STX Pan Ocean to Invest in Carriers

11 November 2009 (Last Updated November 11th, 2009 18:30)

Singaporean shipping line STX Pan Ocean plans to invest $880m in eight very large ore carriers, to be delivered by 2012. The company will issue $200m in convertible bonds, with 50% of the proceeds to be used for the purchase of vessels. The bonds are expected to mature five y

Singaporean shipping line STX Pan Ocean plans to invest $880m in eight very large ore carriers, to be delivered by 2012.

The company will issue $200m in convertible bonds, with 50% of the proceeds to be used for the purchase of vessels.

The bonds are expected to mature five years from the date of issuance and will carry a coupon between 3% and 5%.

The company's investment aims to meet the needs of a long-term contract entered with miner Vale International in September.