Grindrod Shipping Holdings Ltd., a global provider of maritime transportation services in the drybulk and product tanker sectors, announced the following transactions.
On December 22, 2020, the Company entered into a sale and leaseback transaction with a Japanese shipowner relating to the 2016-built medium range product tanker Matuku for a cash amount of $26.8 million (before commissions but net of charter pre-payments). The Company will bareboat charter the vessel back for a period of up to 15 years and has the right, but not the obligation, to acquire the vessel beginning in May 2022. The Matuku constituted the security package for our $27.0 million Senior Secured Credit Facility scheduled for maturity in 2021, for which the remaining balance of approximately $17.1 million was repaid in full in connection with the closing of the transaction. We intend to utilize the approximately $9.3 million of net proceeds of the refinancing, together with cash on hand, to repay early $10.0 million of our other $35.8 million Senior Secured Credit Facility, thereby materially reducing our net interest expense and remaining scheduled maturities in 2021.
On December 23, 2020, the Company expects to take delivery of the IVS Atsugi, a Japanese-built eco ultramax drybulk carrier newbuilding. As previously disclosed, the vessel will be chartered-in from its owner for a minimum period of two years with options to extend for up to two additional years, at the Company’s election. In addition, the Company holds options to purchase the vessel in the future.
Martyn Wade, the Chief Executive Officer of Grindrod Shipping, commented:
“The sale and leaseback of Matuku is another testament of our ability to leverage our long-standing relationships with leading Japanese industry participants, one of our company’s distinct competitive advantages. Furthermore, the addition of the IVS Atsugi to our fleet is in line with our strategy to focus on Japanese built “eco” vessels, which enjoy distinct operational and commercial advantages.”