Norway-based LPG shipping firm Avance Gas Holding has received commitments for a USD 515 million credit facility.
The company said that the new loan would enable full refinancing of its outstanding debt, evidencing the strong support from the shipping banks and maintaining attractive cash break even of USD 22,500/day.
The commitments are subject to documentation and customary closing procedures.
Avance Gas unveiled the refinancing deal as part of its first quarter of 2019 financial report, in which it said that its net loss for the period widened.
Net loss was at USD 15.2 million in the first quarter of the year, compared with a net loss of USD 2.8 million reported in the fourth quarter of 2018.
Time charter equivalent (TCE) earnings dropped to 14 million from USD 26.8 million reported in the fourth quarter of 2018, reflecting a weaker freight market. The average TCE rate for the fleet was USD 11,133/day, compared to USD 21,314/day in the fourth quarter of 2018.
After end of first quarter, Avance Gas reached an agreement with Wartsila to acquire two exhaust gas cleaning systems, with the option for further six units. The estimated total project cost is USD 2.9 million per unit.