CP Ships to raise $175 million to repay debt

CP Ships to raise $175 million to repay debt

   CP Ships said Wednesday that it is planning to raise about $175 million via convertible senior subordinated notes due 2024 to repay debt.

   The notes will be convertible to CP Ships’ common shares under certain conditions.

   The final terms of the offering for the notes have not yet been fixed, the Canadian-registered group said. Closing is expected on Feb. 24.

   CP Ships intends to use the net proceeds of the offering to reduce borrowings under two secured revolving credit facilities. The shipping company also plans to offer initial purchasers the option to purchase up to an additional $25 million in notes exercisable within 30 days from the date of pricing of the notes.