Containerships gets votes to allow asset buy under floaters due 2019

By Susanna Moon

Chicago, Sept. 22 – Containerships plc secured the needed consents and waivers for an investment plan under its €50.5 million floating-rate senior secured bonds.

There were enough votes to form a quorum under the written procedure, and the proposal garnered support from 100% of the holders participating, according to a notice by Nordic Trustee Oy.

As announced Sept. 2, Containerships asked for holders to approve contracts to acquire six new LNG-fueled container vessels from China.

Holders could cast votes until 10 a.m. ET on Sept. 21. The record date for the written procedure was Sept. 12.

The company had planned to purchase two vessels and charter four vessels, but it now wants to purchase four vessels and charter two vessels instead, citing improved market conditions.

In addition to the changes to the bonds’ terms and conditions needed to implement the new investment plan, under the proposal the bonds will be amended

• To include an increase in the interest rate on Aug. 1, 2018 to Euribor plus 850 basis points from Euribor plus 750 bps; and

• To reflect a final redemption price of 101% of par instead of 100%.

As compensation, the issuer offered a one-time amendment fee of 0.5%.

The quorum required for the written procedure was bondholders representing at least 20% of the adjusted principal amount of all bonds. To pass, the request had to be approved by at least a 66.66% majority.

The floaters were issued in 2015.

The container shipping company is based in Helsinki, Finland.

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