Britannia Bulk to repay all 11% notes following IPO

By Angela McDaniels

Tacoma, Wash., June 4 - Britannia Bulk Holdings Inc. plans to repay all of its $185 million of 11% senior secured notes due 2011 following its upcoming initial public offering of stock, according to an F-1 filing with the Securities and Exchange Commission.

The company said it will fund the repurchase with proceeds from the IPO, drawings under a new secured term loan facility and amounts held in a vessel acquisition account for the notes.

The notes were issued in November 2006. Up to 35% of them are callable at 112.75 under an equity clawback feature until Dec. 1, 2009. The notes are also subject to a make-whole call at Treasuries plus 50 basis points until Dec. 1, 2009.

The repurchase will cost $209.6 million, the filing stated.

Britannia Bulk will sell up to $182.08 million of common shares under the IPO, which is expected to begin on June 18 and close on June 23.

The London-based company owns and operates a fleet of drybulk, tug and barge vessels with a focus on the Baltic coal trade.

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