Hapag-Lloyd calls $125 million of 9¾% bonds due 2017 at 102.4375

By Susanna Moon

Chicago, Nov. 30 – Hapag-Lloyd AG said it called $125 million principal amount of its $250 million 9¾% bonds due Oct. 15, 2017.

The notes will be redeemed at 102.4375 plus accrued interest on Dec. 30.

The redemption will depend on the company refinancing its fleet financing 2011 with a new vessel financing facility for at least $115 million being provided by its lenders, according to a company press release.

The call is being made “in the context of a continuous effort in optimizing its capital structure and reducing interest costs,” the release said.

The bonds were issued in October 2010 with a coupon that reflected interest rate levels as a consequence of the financial crisis at that time, the company said.

The company said it may decide to redeem more of the bonds prior to maturity.

Hapag-Lloyd is a Hamburg, Germany-based container ship company.

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