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Pacific Basin to raise $125m from convertible bonds

Pacific Basin to raise $125m from convertible bonds
Minor bulk specialist Pacific Basin Shipping is taking advantage of good financial market conditions to raise funds.

PacBasin said in a stock market announcement that it plans to raise about $125m through a convertible bond offering, subject to shareholders' approval. The bond Issue with a 3.25% rate and due in 2021, represents "attractive funding" with a maturity beyond the company's current convertible bonds maturing in 2016 and 2018 respectively, PacBasin said.

The company said it intends to use the proceeds primarily to maintain the group’s balance sheet strength and liquidity and to continue to proactively manage its upcoming liabilities, including its existing convertible bonds, as well as for general working capital purposes.

PacBasin has recently said current second hand vessel prices represent outstanding value however added that they were not currently in the market to buy more vessels.