Zim will make a full forced redemption of four series of bonds totaling $ 352 million
Posted on Apr 24, 2021 by Ifi Reporter - Dan Bielski
The unprecedented tide in the shipping industry allows Zim, which is responsible for one of the largest haircuts in the history of the economy, to advance the repayment of full debt to bondholders and dramatically reduce leverage.
Zim, which is managed by Eli Glickman, will make a full forced redemption of four series of bonds totaling $ 352 million. ZIM will repay the debt including principal, accrued interest and interest payments deferred in June 2021 - that is, two years before the original repayment date.
Zim's net financial debt totaled $ 1.24 billion at the end of 2020 after the company enjoyed a jump in its revenues and profitability in the second half of 2020 due to excess demand over supply of sea freight volume followed by a sharp rise in sea freight rates in containers.
ZIM earned $ 366 million in the fourth quarter of 2020 compared to a profit of $ 1.2 million in the same quarter in 2019. The steep rise in the company's profits was due to a 49% jump in the average cost of transportation per container to $ 1,518. ZIM generated a $ 414 million cash flow surplus from its current operations in the fourth quarter of 2020 and a $ 881 million cash flow surplus over the entire 2020 cash flow surplus.
The company predicts that Adjusted Ebitda in 2021 will be $ 1.6-1.4 billion, an increase of 35% -54% compared to 2020. Zim raised $ 218 million in an initial public offering of its shares on the New York Stock Exchange at the end of January 2021. Zim's share price has risen 116% since the IPO and reflects a value of $ 3.7 billion.
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