Danish shipping company Hafnia Tankers signed a USD 360 million loan on February 23 to refinance twelve medium range (MR) product tankers and provide post-delivery financing for the company’s six MR newbuilds.
The credit, set to mature in March 2023, is comprised of a USD 124 million term loan, a USD 100 million revolving credit facility and a USD 136 million delayed draw term loan facility.
Signed with ABN AMRO Bank N.V, Danish Ship Finance, Danske Bank A/S and ING Bank N.V. acting as joint bookrunners and mandated lead arrangers, the credit refinances an existing USD 340.5 million credit and provides Hafnia with savings on the interest cost as well as releases cash to the company.
“We are extremely pleased to have received support from this group of quality financiers including establishing new relationships with BnP Paribas and Danish Ship Finance. With this facility we have lowered our financing costs and hence lowered our cashflow break-even,” says Mikael Skov, CEO of Hafnia Tankers ApS.
Hafnia Tankers’ six MR newbuilds, being built at the Chinese shipyard CSSC Offshore & Marine Engineering, are expected to join the company’s fleet during 2016 and 2017.
The deal is secured by a first priority mortgage on the mentioned vessels, Hafnia added.