Global Ports Holding (GPH), the world’s largest independent cruise port operator, has issued $330 mill of secured private placement notes to insurance companies and long-term asset managers at a fixed coupon of 7.87%.
The notes have received an investment grade credit rating from two rating agencies and will fully amortise over 17 years, with a weighted average maturity of about 13 years.
Most of the proceeds have been used to repay in full the outstanding senior secured loan from Sixth Street, including early repayment fees and accrued interest.
The balance will primarily be used to fund further Caribbean expansion projects and the payment of transaction costs.
This financing generates material savings of cash interest expenses and creates a stable, long-term funding base for the Group. Further, it secures the financing of its growth pipeline, GPH said.
Global Ports Holding, Co-Founder, CEO and Chairman, Mehmet Kutman (pictured), said: “I am delighted that we have reached an agreement with a number of insurance companies, all leading institutions in the private placement market.
“Our strategy and the effectiveness of our approach are firmly endorsed by the investment grade credit ratings achieved for the notes and we look forward to using this additional capital to continue to successfully expand our business. I would like to thank our investors for their support of GPH and our management team,” he said.
Global Ports Holding, CFO, Jan Fomferra, added: “The achievement of an investment grade credit rating for these notes is a testament to the unique strength of our business model and supports our financing capacity.
“This financing arrangement will allow us to finance our anticipated investments in new port expansion projects while also lowering our interest expenses and lengthening the maturity profile of our debt. I want to also thank our investors as well as our advisors for the success of the debt placing,” he said.
