International Seaways Prices Baby Bonds

Tanker owner International Seaways (NYSE:INSW) has priced their new baby bond offering at 8.50%.

The bonds mature in 2023 and have an early redemption in 2020.

The bonds are rated Caa1/CCC+ by Moodys and Standard and Poors–highly speculative.

At this pricing (and rating) we have no interest in this issue, but will do some further digging in the week ahead.

The pricing term sheet is here.

4 thoughts on “International Seaways Prices Baby Bonds”

  1. US company is headquartered in NYC, so I wonder if they will benefit from the recently enacted tax reform.

  2. I think the only thing i see as positive for the company is that the common stock doesn’t pay a dividend where they have a lot of cash flying out the door. But their book #’s do not look great at all in my opinion. I don’t see anything that looks like they are headed in the right direction. Declining revenue, increased debt, declining cash, declining assets, negative net income, etc… Debt to EBITDA is 7.x. I wasnt impressed with the current slide deck either.

    1. Totally agree, revenue declining for 3 out of the last 4 years and negative earnings 3 out of the last 4 years. Yikes!

  3. Tim, The fact that it even has a rating, it’s a debt instrument and it has a short call window would actually make it more desirable compared to some other like shippers. 8.5% for two years, even at par, sounds fair enough to me given the very little to pick from at the moment. I’ll look forward to your followup.

Leave a Reply

Your email address will not be published.