Danmarks Skibskredit begins capped tender offer for 2025 covered bonds

By Marisa Wong

Los Angeles, Oct. 10 – Danmarks Skibskredit A/S (Danish Ship Finance) is inviting holders of its €500 million outstanding 0.125% covered bonds due March 20, 2025 (ISIN: DK0004132677) to tender their bonds for purchase for cash, up to a maximum aggregate nominal amount of €200 million.

The purchase price will be determined using the interpolated mid-swap rate and a purchase spread of 35 basis points.

The company will also pay accrued interest.

The issuer said it reserves the right to purchase more or less than the maximum acceptance amount.

If the amount of bonds tendered exceeds the offer cap, the issuer will accept the bonds in order of priority and with proration applied.

Holders who place firm orders for new euro-denominated fixed-rate covered bonds in Danmarks Skibskredit’s concurrent new bonds offering will be given priority in acceptance under the tender offer. Non-preferred tenders – those submitted by holders who have not placed firm orders for the new bonds – will have second priority in acceptance.

The invitation is not conditioned on any minimum participation by bondholders, the issuer noted.

Danske Bank A/S (+45 45 14 68 12), DekaBank Deutsche Girozentrale (+49 69 7147 6028 / 7072; DebtSyndicate@deka.de), J.P. Morgan SE (+44 20 7134 2468; liability_management_EMEA@jpmorgan.com), Nordea Bank Abp (+45 61 61 29 96; Nordealiabilitymanagement@nordea.com) and UniCredit Bank AG (+49 89 378 18825; liability.management@unicredit.de) will act as dealer managers for the offer. Danske Bank will act as billing and delivery agent.

A holder must submit an offer to one dealer manager only, the issuer noted.

Holders will not be able to submit offers through VP Securities A/S, the Danish Central Securities Depositary, the issuer added.

The offer will expire upon closing of the book-building process for the new bonds. The issuer will announce the expiration time right after the book-building process for the new bonds has opened.

Pricing under the tender offer will be determined at or around the same time as pricing for the new bonds.

The Copenhagen-based advisory firm offers insurance, mortgages and financing for shipping companies.

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