Pacific Basin raises $230 million from upsized CB

The Hong Kong-based shipping company executes a deal that is viewed as well priced, and only two days after Vedanta issues another well-received deal, sparking hopes of a pickup in CB issuance in Asia.

Pacific Basin Shipping has raised $230 million from a convertible bond that was well-received by the market, but at the same time provided cost-efficient financing for the company. Thanks to strong demand, the bookrunners were able to exercise the upsize option in full straight away, increasing the deal from the $200 million that was originally on offer. It was also priced at best terms for the issuer.

The dry-bulk shipper intends to use the proceeds to buy back an existing CB which becomes puttable in February next year and which currently trades out of the money. The new bond has a lower coupon and a one-year longer effective maturity versus the existing bond at launch...

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