Hubline fund raiser for vessel acquisitions

Hubline fund raiser for vessel acquisitions

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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