Troubled French carrier could raise $800m to ease its debts

CMA CGM could be about to raise an extra US$800 million through a high-yield bond issue to help secure its financial base.

According to IFW’s sister publication, Lloyd’s List, the French carrier would need agreement from its 77 creditor banks before it could push the bond through.

CMA CGM’s main lenders are reported to have signed-up to the agreement, but it is taking others involved in syndicates longer to complete the process. However, it is expected that the bond offering could be launched by the end of March.

The bond issue would be used to reduce the line’s unsecured debt, which is estimated at around 40% of the $5 billion owed. CMA CGM declined to comment on the reports.

Late last month, Turkish group Yildirim, with interests in shipping, ports and mining companies, invested $500 million in CMA CGM, in return for redeemable bonds.

CMA CGM said the Yildirim investment had enabled it to “sustainably strengthen its balance sheet and secure its investment plan, while providing additional funds to support expansion”.

There is no further news on a deal with French sovereign fund FSI, which was set to invest $150m for a minority share in the shipping line in December.