In August 2016, we successfully completed our third US private placement bond issue. This additional US$ 60 million tranche, takes the total to US$ 220 million. Oldendorff Carriers secured additional long term financing to support the company’s investment program, and to take advantage of the current attractive interest rate environment.
The US private placement market continues to be an attractive funding source for the company. As a repeat issuer, strong relationships have been developed with both existing and new bond investors. This is providing a flexible funding platform to structure deals on both a bi and multilateral basis.
Oldendorff Carriers first entered the USPP market in 2014, and secured tenors of up to 30 years in its second bond issuance, which was awarded the Private Placement "Deal of the Year" by Marine Money in 2015.
However, cash flow from operations will remain the main source of funding for the company’s strategic investment objectives, enabling the company to maintain its conservative capital allocation practices.
Oldendorff Carriers expects to deliver a positive net profit in 2016, further strengthening the company’s cash reserves and maintaining low leverage.