Pacific Basin Shipping, Hong Kong’s leading bulk specialist, yesterday closed a US$325m revolving credit facility secured over 50 of the company’s owned ships.
“We are very pleased with the terms of this important new milestone transaction for Pacific Basin. The facility further increases our funding flexibility with access to long-term committed funding on a revolving basis for the next seven years at an attractive cost which further reduces our already very competitive vessel P&L breakeven levels,” said Peter Schulz, chief financial officer.
“We are glad that the facility has been supported by first rate banks that are familiar with the shipping industry, including four banks that represent new banking relationships for Pacific Basin,” he added.
The new facility is supported by a syndicate of eight international banks. It refinances several of Pacific Basin’s existing credit facilities and raises fresh capital on previously un-mortgaged vessels. Borrowings under the facility carry an interest cost of Libor plus 1.5%, significantly extend the company’s overall amortisation and enhance it financial flexibility.
The average of the 50 ships is 11 years. The facility will effectively extend their repayment profile by an additional 11 years to an average age of 22 years.
The facility was 40% oversubscribed reflecting, Pacific Basin maintains, the attraction of the company’s solid balance sheet, corporate profile, business model, track record and reputation.
Sources:hongkongmaritimehub
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