International Seaways announced that it has closed on a new senior secured credit facility with an aggregate capacity of $750 million, composed of a term loan of $530 million and a revolving credit facility of $220 million, of which $70 million was drawn on May 24, 2022. The Facility matures in May 2027.
The proceeds from the Facility were used to repay three existing senior debt facilities aggregating $575 million at the time of closing.
Jeff Pribor, the Company’s CFO, commented, “We are pleased to close on this new facility, which delivers a number of financial benefits to INSW. The Facility extends the maturity profile of our senior debt by more than two years, reduces our average interest rate on senior debt by about 15 bps, saves approximately $1 million on quarterly amortization payments, and saves approximately $60 million in 2022 through the updated schedule of mandatory repayments. We are proud to partner with our top-tier banking group and we’d like to thank them for their continued support.”
The Facility’s covenant package is similar to the existing facilities and contains enhanced sustainability-linked features. The feature includes the same key performance indicator outlined in the Poseidon Principles based on a decarbonization trajectory and two other indicators that monitor green spending, aimed to improve energy efficiency and reduce emissions, as well as lost time incident frequency rates.
“International Seaways remains committed to staying at the forefront of ESG,” added Lois Zabrocky, President and CEO commenting on the Company’s dedication to environmental, social and governance initiatives. “Our enhancement of the sustainability-linked features in this facility demonstrates our continued leadership in advancing initiatives that improve the environment and the lives of our seafarers.”