Safe Bulkers, Inc., an international provider of dry cargo maritime services, announced yesterday that the Company has entered into a $ 70.0 million five-year loan agreement consisting of a $ 30.0 million urgent loan tranche. US and dwindling revolving credit. a tranche of the credit line providing for the write-off of up to USD 40.0 million for seven vessels. The agreement contains financial covenants in accordance with the Company’s existing loans and credit lines.
The proceeds from the line will be used to refinance a $ 64.3 million line of credit for eight vessels maturing in 2023, seven of which will secure the new line of credit and one of which will remain debt-free. The company does not currently intend to use the full capacity of the revolving credit line tranche.
The refinancing transaction was evaluated and approved by the Board of Directors of the Company, with the exception of an independent member of the Board of the Company, who is the chief executive officer of the financial institution that is the lender of the transaction.
As of March 31, 2021, we had an outstanding amount of USD 607.6 million. After voluntary early debt repayments and debt repayments in connection with the sale of ships or debt refinancing totaling US $ 106.9 million, planned principal payments of US $ 4.5 million and the use of a loan of US $ 30.5 million As of June 18, 2021, the outstanding debt amounted to USD 526.7 million. … On a provisional basis, following this refinancing and assuming no use of the revolving credit facility, we will have an outstanding debt of US $ 500.2 million and a US $ 67.5 million available under our revolving credit facilities.
Dr. Lucas Barmparis, President of the company, said: “We are continuing our strategy of gradually reducing our Company’s leverage and increasing the revolving credit line component of our debt, which provides more flexibility and lower total interest costs while focusing on a lower debt burden. as we continue to replenish our fleet with modern, energy efficient new buildings or used tonnages from leading Japanese shipyards that will replace older or Chinese-built ships. “
Source: Safe Bulkers, Inc.