Since the beginning of 2016 the Athens-based containership owner Costamare Inc. has completed debt financing transactions of over USD 760 million, according to the company.
In August 2016, the company entered into a loan agreement with a European financial institution for the financing of the third and fourth 11,000 TEU vessels on order, acquired under the JV with York Capital. The facility is for an amount of up to USD 87 million which will be repayable over 3 years. Costamare said that the proceeds are expected to finance the remaining yard installments for the two vessels.
During the same month, the shipowner finalized the refinancing of two credit facilities secured with the 2006-built vessel Cosco Beijing and the 2000-built ships Sealand New York and Sealand Washington. Under the new financing arrangements, balloon installments of USD 90 million, due in the second and third quarter of 2018, have been extended to be amortized over three years.
Furthermore, the company finalized the refinancing of its USD 1 billion facility in September 2016. Under the new agreement, the balloon payment of USD 270 million, due in the second quarter of 2018, has been extended to be amortized over three years.
“Our goal is to strengthen the company and enhance long term shareholder value. Managing our debt repayment schedule, minimizing our capital commitments and adjusting the dividend are necessary steps in today’s market environment,” Gregory Zikos, Chief Financial Officer, said.
Out of the USD 760 million worth of debt financing transactions, around USD 400 million involve the extension for 3 years of debt maturing in 2017 and 2018, some USD 175 million relate to the financing of Costamare’s newbuild program, USD 150 million relate to the refinancing of existing facilities, and USD 40 million relate to new financings.
“We have no debt maturities in 2017, we have reduced our 2018 balloons from approx. USD 440 million to approx. USD 80 million and we have minimized our capital expenditure requirements,” Zikos said.