The shipping industry’s near-term outlook remains questionable amid slowing economic growth and a debt default in Europe not quite off the table yet, but after a rebound in its share price during the past two weeks Korea’s Hanjin Shipping saw a chance to raise new capital from a convertible bond issue on Wednesday.
With the downside protection and a decent coupon, investors were comfortable buying at these levels, allowing the company to raise $150 million from a five-year deal with a three-year put that was priced at the investor-friendly end of terms. In secondary market trading yesterday the CB was bid slightly above par at 100.125.
Existing...