Safe Bulkers, an international provider of marine drybulk transportation services, announced that the Company has accepted an offer letter to refinance a loan facility of $51.4 million secured by 4 vessels, part of which would expire in 2022, by extending the relevant tenor by 2 years and pushing back the balloon payments to 2024, concluding the Company’s refinancing actions.
Upon completion of all loan documentation the repayment schedule of the Company on a pro-forma basis is presented in Table 1, in comparison with the repayment schedule as of September 30, 2018.
|Table 1: Repayment Schedules on an annual basis|
|($ in millions)|
|Schedule as of
September 30, 2018
As of September 30, 2018, the total debt1 of $555.4 million was secured by 37 vessels, whereas following the refinancing the total debt on a pro-forma basis is $610.7 million secured by 39 vessels. The average margin2 following the refinancing is expected to be 211bps.
The refinanced facilities contain financial covenants in line with the existing loan and credit facilities of the Company.
Dr. Loukas Barmparis, President of the Company, said: “Having concluded the refinancing of our debt in close cooperation with our lenders, we believe that we have a comfortable debt profile which provides for one of the lowest cash break-even points in our industry for the following five years. Our consolidated leverage3 was 55% for an 8.1 year average-aged fleet as of the end of the third quarter 2018. The additional liquidity will provide financial flexibility to us and is expected to be used for financing our environmental investments including scrubbers and ballast water treatment systems and for general corporate purposes including acquisitions.”
1 Total debt includes deferred financing costs.
2 Excludes sale and lease back agreements
3 Consolidated leverage is a non-GAAP measure and represents total consolidated liabilities divided by total consolidated assets. Total consolidated assets are based on the market value of all vessels (before BWTS and scrubber installation), owned or leased on a finance lease taking into account their employment, and the book value of all other assets.