Klaveness Combination Carriers AS positioned for growth through contemplated equity raise
Klaveness Combination Carriers AS, the leading owner and operator of modern combination carriers, holds several attractive growth options and is now launching a contemplated private placement of shares with total gross proceeds of approximately USD 45-70 million. Current investors, management and previous CABU investors will subscribe for USD 25 million, the company said in its press release.
Klaveness Combination Carriers AS (KCC), with its nine CABU vessels in operation and five CLEANBU vessels on order, is the leading owner and operator of modern combination carriers. Combination carriers are vessels able to transport both dry and wet bulk cargoes in the same cargo holds. Through this, the vessels achieve 45% more revenue days, 40-60% lower fuel consumption and CO2 emissions, and 1.5 – 2 times higher earnings compared to standard bulkers and tankers.
KCC’s vessels, with close to zero ballast, is uniquely positioned to capitalize on the IMO 2020 Sulphur cap on marine fuel. The new regulation is expected to increase bunker costs significantly and due to the unique trading patterns, the earnings of the vessels are increasing with increasing fuel cost.
The CABU vessels have for more than fifteen years served the Aluminium industry and is today the largest transporter of liquid Caustic Soda to Australia and Brazil. On the back of the successful CABU concept, KCC has developed a new generation of Combination Carriers, CLEANBU, targeted to serve the CPP market with the same reliability, efficiency and cost effectiveness as the CABUs.
Klaveness Combination Carriers holds several, attractively priced options for CLEANBU vessels at Jiangsu New Yangzi Shipbuilding Co., Ltd (YZJ) in China. KCC intends to use the proceeds from the contemplated private placement to declare one or more options for the construction of further CLEANBUs.
The following notification was sent to ABM Nordic today:
Klaveness Combination Carriers AS, a company currently owned 77% by Klaveness Ship Holding AS (“KSH”), has retained Clarksons Platou Securities AS as sole manager to advise on and complete a contemplated private placement of shares with total gross proceeds of approximately USD 45-70 million, subject to favourable market conditions. KCC holds several, attractively priced options for combination carriers at Jiangsu New Yangzi Shipbuilding Co., Ltd (YZJ) in China. KCC intends to use the proceeds from the contemplated private placement to declare one or more options for the construction of further vessels with scheduled deliveries between 3Q 2020 and 1Q 2021. Following a successful transaction, KSH will own above 50% of the share in KCC and remains to be the controlling owner.
The application period for the Private Placement is expected to end at 16:30 CET on 21 September 2018, however it may be closed earlier at the Company’s discretion. The Company also reserves the right to withdraw the Private Placement subject to certain conditions.
