Euronav Plans $350 Million Capital Increase To Pay For New Ships

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January 6, 2014

reuters_logo1BRUSSELS, Jan 6 (Reuters) – Belgian shipping group Euronav said it planned to raise $350 million in a capital increase to pay for the 15 large crude carriers it bought from Denmark’s Maersk.

On Sunday, Euronav said that it would buy the tankers for $980 million, citing an improved outlook for the crude shipping market.

The acquisition bill will be paid with a $500 million debt facility and $235 million in mezzanine financing, Euronav said, without giving further details.

Euronav said it will also raise $50 million by issuing shares around January 10 and will ask shareholders in February to approve issuing a further $300 million in shares.

The group said BHR Capital, Glendon Capital Management, GoldenTree Asset Management, Solus Alternative Asset Management, and York Capital Management Global Advisors would subscribe to the capital increases. (Reporting by Robert-Jan Bartunek; editing by John O’Donnell)

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