Britannia Bulk calls all 11% notes following IPO

By Jennifer Chiou

New York, June 25 - Britannia Bulk Holdings Inc. will redeem all of its 11% senior secured notes due 2011 using a portion of the proceeds from its initial public offering of stock, according to a 6-K filing with the Securities and Exchange Commission.

The company will also use drawings under a new secured term loan facility and amounts held in a vessel acquisition account for the notes.

The first notice of redemption is for $64.75 million, or 35%, of the notes. The redemption price for each $1,000 principal amount of notes is $1,074.88, plus accrued and unpaid interest of $15.89. The redemption date is July 23.

The second notice of redemption is for $120.25 million, or 65%, of the notes. For each $1,000 principal amount, the redemption price is $1,133.61, plus accrued and unpaid interest of $16.19. The redemption date is July 24.

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 London-based company owns and operates a fleet of drybulk, tug and barge vessels with a focus on the Baltic coal trade. It announced plans for the repayment on June 4.

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