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Torm rocks the market with bond sale fueling new tankers.

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TLDR:

  • Torm, a Danish product tanker owner, plans to sell a five-year senior unsecured bond to finance its acquisition of eight LR2 tankers.
  • The net proceeds from the bond sale will be used to partially finance the purchase of five of the eight LR2 product tankers acquired in November.
  • The remaining funds will be used for the full repayment of a bridge facility and for general corporate purposes.

Danish product tanker owner Torm has announced plans to sell a five-year senior unsecured bond to raise funds for the acquisition of eight LR2 tankers. The net proceeds from the bond sale will be used to partially finance the purchase of five of the tankers, as well as cover the full repayment of a bridge facility. The remaining funds will be used for general corporate purposes.

In November, Torm acquired the eight LR2 product tankers, and this bond sale is part of its strategy to finance the purchase. The company aims to take advantage of the current low interest rate environment by issuing bonds, which will provide it with the necessary funds while spreading out the repayment over a five-year period.

The LR2 tankers are larger-sized product tankers that are used for carrying refined oil products, such as gasoline and diesel, on long-haul voyages. Torm’s decision to acquire these tankers reflects its confidence in the future demand for refined oil products and its desire to expand its fleet.

Torm is a well-established player in the product tanker market, with a fleet of approximately 80 vessels. The company is known for its focus on operational excellence and its commitment to sustainability. By financing the acquisition of the LR2 tankers through a bond sale, Torm is able to secure the necessary funds while maintaining its financial flexibility.

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