PIL wraps up restructuring, raises $600M of fresh funding

Singapore-based container shipping company Pacific International Lines (PIL) has completed its restructuring process, securing $600 million in fresh capital in order to stay afloat.

On 30 March 2021, a $200 million investment was completed by Heliconia Capital Management, an investment firm owned by Temasek Holdings, by way of subscription of convertible preference shares into the company’s holding company.

As informed, a $200 million term loan facility and $200 million revolving credit facility were executed by Heliconia.

What is more, PIL issued $128,013,294 in aggregate principal amount of Option A Securities and US$27,498,008 in aggregate principal amount of Option B Securities pursuant to the restructuring scheme.

“The completion and successful implementation of our restructuring is a chance for renewal in PIL, and the company is now well-positioned for sustainable growth,” S.S. Teo, Executive Chairman, commented.

“Going forward, we will continue to improve our business operations, deleverage the balance sheet and reinvent ourselves as we adapt to the ever-changing market.”

“On behalf of the Board, I wish to thank Heliconia and our creditors for their firm commitment and their faith in PIL. We are also grateful to our staff, as well as advisors, for their dedication and continued support during the restructuring process,” Teo added.

The carrier started looking for investors after it experienced financial difficulties due to the impact of the COVID-19 and market volatility including high bunker prices and oversupply of capacity. In February this year, the container shipping major filed an application to the Singapore High Court to seek approval for the company’s proposed restructuring plan.