Safe Bulkers agrees deal with ING to ease covenants

SafeBulkers

Safe Bulkers, an international provider of marine drybulk transportation services, announced that the Company has accepted a signed offer letter from ING Bank N.V., to amend certain terms of an existing committed revolving credit facility.

Following this amendment, the committed revolving credit facility of up to US $32.0 million, with five year duration, secured by two newbuild vessels 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 vessels under the facility divided by the aggregate outstanding loan value must exceed 110% until year end 2017 and 120% from 2018 onwards.

Dr. Loukas Barmparis, President of the Company, said: “This is the second agreement we announce targeting to align financial covenants amongst our banks and increase our financial flexibility for the coming years.”

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