CONTSHIPS Logistics, the world’s largest owner of feeder containerships in the 900–2,000 teu segment, has successfully raised $75 million through a tap issue of its outstanding sustainability-linked Nordic bond.
The move reflects both investor confidence and growing demand for feeder tonnage, as the company continues to position itself for expansion in a strong market environment.
Strong Market Demand for Bonds
The new five-year notes were issued at 99% of par, an improvement from the 98% achieved during the initial $100 million offering earlier this year. Investor appetite was strong, with CONTSHIPS’ initial $50 million target covered more than twice over. Despite this, the deal was upsized by only 50%, underlining a disciplined approach. Arctic Securities and Fearnley Securities served as joint bookrunners, while Clarksons Securities acted as co-manager of the placement.
Expansion Strategy and Market Outlook
Led by Nikolas Pateras, the Greece-based owner of 38 feeder vessels is actively exploring opportunities for growth. A project for up to 20 newbuildings has been circulated to shipbuilders, though Pateras has noted that current quotes are at least 20% above attractive levels.
Meanwhile, the company is capitalising on strong secondhand market demand, agreeing to sell the 18-year-old Contship Oak (1,118 teu) to Mediterranean Shipping Co. for $11.5 million. Proceeds from both vessel sales and bond issues bolster CONTSHIPS’ war chest, which already includes around $100 million from recent divestments.
The latest $75 million tap issue adds to CONTSHIPS’ robust financial position, supporting both ongoing corporate needs and future expansion initiatives. While newbuilding prices remain high, the sale of older assets and continued strong investor backing highlight the company’s strategic flexibility. With demand for feeder vessels rising among major liner companies, CONTSHIPS appears well placed to benefit from favorable charter market conditions.
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Source: Lloyd’s List
