Asset Finance International

Capital pulls IPO but closes loans.(Capital Maritime Corp.)

Capital Maritime & Trading Corp has withdrawn its initial public offering (IPO) citing "unfavourable" market conditions, but has found bank debt.

The move comes in the wake of the disappointing stock market debuts by Eagle Bulk Shipping and TBS International. Both the Eagle Bulk and TBS offerings priced well below their original price ranges.

Capital Maritime disclosed in its IPO filings that it had obtained four commitment letters from bank lenders for secured credit facilities totalling $451.7 million.

The facilities are expected to have 10-11 year terms and bear interest at Libor plus 90-97.5bp.

The lenders comprise: Bremer Landesbank Kreditanstalt Oldenburg-Girozentrale and Deutsche Shiffsbank (first facility); HSBC Bank and ING Bank (second); HSH Nordbank and Aegean Baltic Bank (third); and Fortis Bank (fourth). …

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