Marshall Islands drybulk company Baltic Trading Limited has entered into a new credit agreement with Nordea Bank Finland plc and Skandinaviska Enskilda Banken AB for a USD 148 million senior secured credit facility.
The new five-year credit facility is comprised of a USD 115 million revolving credit facility and a USD 33 million term loan facility.
The USD 115 million revolving credit facility refinances the total amount outstanding under the company’s existing senior secured revolving credit facility, which was scheduled to mature in 2016.
The total amount outstanding under the USD 115 million facility will be USD 104.5 million as of January 7, 2015 and remaining amounts can be used for general corporate and working capital purposes.
The USD 33 million term loan facility provides USD 16.5 million of financing for each of two newbuilding vessels, the Baltic Scorpion and the Baltic Mantis, which are expected to be delivered in the second quarter and third quarter of 2015, respectively.
The five-year USD 148 million senior secured credit facility will bear interest at LIBOR plus a margin of 3.00%.
Baltic Trading has taken delivery of the Baltic Wasp, a 64,000 dwt Ultramax newbuilding, the second of four Ultramax vessels to be delivered to the company from Yangfan Group Co., Ltd.
The vessel delivered to its charterer, Pioneer Navigation, on January 6, 2015 to commence a spot market-related time charter for 11.5 to 14.5 months.
Baltic Trading Limited’s current fleet consists of four Capesize, four Supramax, two Ultramax and five Handysize vessels with an aggregate capacity of approximately 1,222,000 dwt.
After the expected delivery of the remaining two Ultramax newbuildings that Baltic Trading has agreed to acquire, the company’s fleet will comprise of 17 drybulk vessels.