Malaysia’s Hubline is pushing ahead with a notes issue to raise up to RM200m ($50m). The money will be used to repay borrowings and buy six new ships.
Hubline has proposed to cancel half a sen from the par value of each 1-sen Hubline share and then to consolidate the 589.85m shares into 11.80m shares based on 20 half-a-sen shares into one 10-sen share. The proposed par value reduction would give rise to a credit of about RM58.98m.
Hubline also proposed to issue redeemable convertible notes with a total principal amount of up to RM200m. With an interest of 1% per annum, the four tranches will have a five-year tenure.
Around RM70m of the raised proceeds will go on buying six tugs and barges, the company said.