The Chilean container shipping company CSAV said it has priced a rights offering for 6.75 billion shares of stock it is selling at about 4.88 cents per share.
The company said based on the price it expects to collect funds of about $330 million.
CSAV's board approved a capital increase of $500 million in April, and since the rights offering will only get it partway to that goal, CSAV said it will "evaluate the possibility of calling for an additional capital increase to complete the $500 million approved originally in April.
"The placement of new shares will enable CSAV to continue with its investment plan, consisting of the purchase of seven new 9,300-TEU vessels. These will be delivered as the end of 2014 and will permit the replacement of ships currently chartered by the company. With this acquisition, CSAV will align its percentage of own fleet with the industry average, much higher than the 8 percent it had at the beginning of 2011," the company explained.
The Alphaliner list of container liner fleets
shows that today about a fifth of CSAV's capacity is on owned ships.
CSAV said it will use the funds raised to repay debt with Banco Latinoamericano de Comercio Exterior S.A. (BLADEX) and inject additional cash for its development plans. - Chris Dupin