DryShips, a diversified owner of ocean going cargo vessels, announced it has received firm commitment for a senior secured credit facility of up to $150 million with ABN AMRO bank and KEXIM to partly finance the delivery of its four Very Large Gas Carriers. The Facility remains subject to definitive documentation.
The Facility will be secured by the Company’s four VLGCs, will have a tenor of 6 years, will bear an interest rate of LIBOR plus margin and will have an amortization profile of approximately 12 years.
The four high specifications VLGCs currently under construction at Hyundai Heavy Industries are scheduled for delivery in June, September, October and December of 2017 and will be employed on long term charters to major oil companies and oil traders, with a total gross backlog of approximately $390 million, including optional periods.
Mr. George Economou, Chairman and Chief Executive Officer commented:
“We have come a long way since a year ago, when we were in discussions with commercial lenders about the restructuring of our debt. We are pleased that we have put all this behind us and grateful for the support of ABN AMRO and KEXIM in arranging our first bank financing since 2014. Following the closing of the ABN/KEXIM loan, DryShips will still have the majority of its fleet (32 vessels) unencumbered. In dollar terms, assuming a modest 50% leverage of the market value of these assets, this would imply the ability to raise approximately $250 million (or $19.13 per share) of additional debt capital. We will now concentrate our efforts on arranging financing for these vessels. This will allow us to focus on further accretive vessel acquisitions without the need to raise further equity.”