Safe Bulkers, Inc. (NYSE: SB), an international provider of marine drybulk transportation services, announced that the Company has entered into a new term loan facility refinancing three credit facilities, in the total amount of US $44.9 million, related to one Post-Panamax class vessel and two Panamax class vessels.
The new term loan facility with Danish Ship Finance, of US $40.0 million, has a tenor of six and a half years, is secured by the same three vessels that the old facilities financed and contains the following financial covenants, in line with the existing loan and credit facilities of the Company:
- The total consolidated liabilities of the Company divided by its total consolidated assets must not exceed 85%.
- The aggregate market value of the three vessels under the facility divided by the aggregate outstanding loan value must exceed 110% until year end 2017 and 120% 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 (total consolidated assets less total consolidated liabilities) must not be less than US $150.0 million.
The repayment schedule for the facilities that were refinanced and the repayment schedule for the new facility are presented in Table 1 below:
Table 1: Repayment Schedule on annual basis in US$ million.
Dr. Loukas Barmparis, President of the Company, said: “This is the second refinancing agreement we entered into, designed to push back 3 balloon payments from 2018, 2019 and 2020 to 2022 in line with Company’s policy to maintain a comfortable debt repayment profile until 2020, at very competitive costs.”