French company CMA CGM, the world’s third-largest container shipping firm, has concluded an agreement with its 72 banks to reschedule a credit line expiring this year, with a new equity injection constituting three loans worth €280m (US$310m) from two investors.
As part of this injection, the Saadé family who control the company has agreed to dilute its stake to 70 per cent.
The company, which at the end of 2012 had a net debt of around US$4.6bn, has also secured a modification of the terms of its bank debt to take into account freight sector volatility.
The industry is currently struggling to turn a profit in the weak global economic climate as freight rates fluctuate and often fail to cover operating costs.
The conclusion of the year-long talks comes only weeks after CMA CGM announced it had reached a deal to sell its 49 per cent stake in Terminal Link, the company’s terminal operating business, to Hong Kong-listed ports operator China Merchant for €400m (US$534.5m).
The company expressed satisfaction with the agreement, saying in a statement: “CMA CGM's agreement with its banks together with new equity injection will result in a significantly more resilient and flexible financial structure.'
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