VICTORIA, Oct. 22, 2013 /CNW/ - BC Ferries announced today that it has
entered into an agency agreement with a syndicate of investment banks
to issue $200 million of its senior secured bonds. The bonds will bear
interest at 4.702% per annum and will mature in 30 years. The issue is
expected to close October 25, 2013.
This issuance is partially related to the early redemption in July 2013
of the $140 million bond Series 08-2, which had a maturity date of
December 19, 2013. As previously announced, it was BC Ferries'
intention to refinance these bonds.
The net proceeds from the sale of this series of bonds will be used to
partially fund capital expenditures, to repay amounts outstanding under
the operating credit facility, to fund the series reserve account and
to provide funding for general corporate purposes.
SOURCE: British Columbia Ferry Services Inc.