Dalian: Russian containerline FESCO is buying back some bond issues to change its debt profile. FESCO said it would spend up to $85m buying back some notes due in 2018 and 2020. The offer is being conducted as a modified Dutch auction over the next 20 business days.
In addition FESCO is making a public tender offer for up to RUB4bn in Rouble bonds series BO-02 at a fixed price of RBN80 in a bid to reduce the company’s overall leverage as well as improve its debt currency structure.
“The cash tender offer is the next essential step of our liability management initiative which aims to reduce the leverage, provide for a more optimal currency balance in the company’s debt structure and maximize the shareholder value,” said Viсtor Belyakov, the CFO of FESCO.