TradeWinds: Contships launches $100m bond run as first private Greek shipowner to raid Nordic market

Nikolas Pateras-led firm set to break new ground by tapping investors for cash

Contships Management, the world’s largest independent owner of feeder container ships
between 900 teu and 1,500 teu, began talks with investors on Tuesday to sell bonds worth
at least $100m in the Nordic market.
A placement of the five-year, sustainability-linked securities would make Contships the
first privately-held Greek firm to tap this particular marketplace for funds.
Shipowner Nikolas Pateras set up the company around a decade ago, Contships has since
acquired almost 60 vessels on the secondhand market and currently has a homogenous
fleet of 41 ships with a total value of about $500m.
TradeWinds understands that the company is seeking to sell the unsecured bonds to raise
cash for general corporate purposes, including debt refinancing and ship acquisitions.
Contships, which counts liners such as AP Moller-Maersk, CMA CGM and Cosco Lines
among its clients, is already busy renewing its fleet.
The firm is seeking to attract investors with solid financials that have been boosted by a
robust container ship market in the wake of the Covid and Red Sea disruptions.
It also champions a conservative financial strategy, successful S&P moves and a good
track record with charterers.
According to financial data submitted to investors, the company paid out $274m in
dividends over the past four years.
At the same time, its net loan-to-value (LTV) stands at 28% with available cash at $30m,
which will soon rise to about $50m following the completion of some recently agreed
ship sales.
The firm expects to achieve an Ebitda of $98m this year, on net revenue of $186m in
2025
Pateras, who is the company’s founder and largest shareholder with a 90.1% stake, is a
traditional shipowner who successfully sold all his vessels before the market crashed in
2008.
He started selectively purchasing ships again in 2010, setting up Contships five years
later as a moderate bet on the feeder container ship market that later developed into a
high-stakes game.
Contships’ remaining 9.9% stake is owned by the company’s management team.
Arctic Securities and Fearnley Securities act as joint bookrunners.
Shipping companies have enjoyed low credit spreads in the Nordic bond market.
Several other, public companies have tapped the market recently, including Scorpio
Tankers, SFL Corp and Diana Shipping

Source: TradeWinds