Safe Bulkers, an international provider of marine drybulk transportation services, announced that the Company has accepted a signed offer letter from DNB (UK) Limited to amend certain financial covenants to its existing credit facility with an outstanding balance of US $145.5 million. Following this amendment, the credit facility contains the following financial covenants:
- The total consolidated liabilities of the Company divided by its total consolidated assets charter inclusive must not exceed 90% until and including year-end 2017 and 85% from 2018 onwards.
- The ratio of the Company’s EBITDA1 to its interest expense must be not less than 2.0:1 on a trailing 12 month basis, applicable from 2018 onwards.
- The consolidated net worth of the Company, defined as total consolidated assets charter inclusive less total consolidated liabilities is waived until and including year-end 2017 subject to a minimum fleet size of 30 vessels and not less than US $150.0 million from 2018 onwards.
- The aggregate market value of the eleven vessels under the facility divided by the aggregate outstanding loan value must exceed 110% until year end 2017 and 120% 2018 onwards.
The agreed repayment schedule is shown in Table below:
Repayment Schedule on annual basis in US$ million.
Dr. Loukas Barmparis, President of the Company, said: “The latest amendment strengthens our Balance sheet, reduces exposure to financial covenants during turbulent times and provides for financial flexibility with zero cash outflows for the next two years. The DnB facility represents about 30% of our debt, excluding sale and lease back financing arrangements recorded as debt, and debt from State institutions with very low margins.”