DHT announces $485 million refinancing & increase in revolving credit facility

DHT

DHT Holdings, (“DHT”) announced that it has entered into a $485 million secured credit facility agreement with a six year tenor for the refinancing of 13 of the Company’s VLCCs. The new credit facility will bear interest at a rate equal to Libor + 2.40% and will have a 20-year repayment profile.  Other terms and conditions are also in line with DHT’s current credit facilities.

The credit facility was oversubscribed by 60% and all of DHT’s nine existing relationship banks committed to significant amounts (ABN Amro, Nordea, Credit Agricole, DNB, ING, Danish Ship Finance, SEB, DVB and Swedbank).

Also, DHT has entered into an agreement with ABN Amro to increase the Company’s revolving credit facility to $57.0 million from the current availability of $43.4 million. The revolving credit is currently undrawn.

The co-CEOs Svein Moxnes Harfjeld and Trygve P. Munthe in a statement commented that the refinancing endorses our access to bank financing at attractive terms through solid support from our relationship banks. The new facility includes a 20-year repayment profile supporting our focus on robust cash break even levels for the fleet.  With the new credit facility and the increased revolving credit facility DHT has:

  • extended the maturity for the refinanced facilities to Q2 2024
  • increased its liquidity position
  • reduced its cash break even

The following credit facilities are being refinanced:

Facility Vessels Amount (mill.)
Nordea Samco Credit Facility Sundarbans/Taiga/Redwood/
Hawk/China/Falcon/Condor
$ 215.2
Nordea/DNB Credit Facility Leopard $  44.4
ABN Amro Credit Facility Lion/Panther/Puma $ 118.4
DNB/Nordea Credit Facility Mustang/Bronco* $  82.5*

*Not drawn.

With the new financing totaling $485 million compared to the amount to be refinanced totaling about $461 million, the Company will increase its cash position by about $20 million after the payment of fees and expenses.  In connection with the refinancing about $4.4 million in previously paid upfront fees related to the refinanced credit facilities will be expensed in Q2 2018 as part of financial expenses.

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