CMA CGM said it has finalized a major financial restructuring launched last year.
The French carrier said the restructuring includes several components:
- An agreement with its banks that provides for a new covenant package taking into account the industry’s volatility and a partial refinancing of a credit line maturing in 2013 into new secured term loans with a maturity of more than three years for a total of 280 million euros ($376 million).
- Signing of a binding agreement with the French Fonds Stratégique d’Investissement, which at closing - expected within three months - will subscribe to bonds redeemable in shares for an amount of $150 million, giving right to a 6 percent stake in CMA CGM upon conversion.
- Closing of the subscription, under the terms of the existing agreement, by Turkey's Yildirim Group of bonds redeemable in shares for an amount of $100 million giving right to a 4 percent stake in CMA CGM upon conversion.
The announcement follows another last month that stated the company had sold 49 percent of its Terminal Link subsidiary to China Merchants Holdings International for 400 million euros.
Rodolphe Saadé, CMA CGM’s executive officer, said the compnay's recent moves will allow it to “operate with the required financial flexibility and constitutes key milestones before contemplating an IPO.”
CMA CGM said it had estimated revenue of $16 billion in 2012 and carried 10.6 million TEUs.
Operating a fleet of 410 vessels, the company is the third largest container carrier. - Chris Dupin