Oslo-based owner and operator of chemical tankers Eitzen Chemical ASA has entered into a loan facility with Skandinaviska Enskilda Banken AB and NIBC Bank N.V. related to its restructuring as set out in the company’s Plan Support Agreement (PSA)
The loan amounts to USD 100 million and it is split into two segments: USD 33.3 million Revolving Credit Facility and USD 66.7 million Term Loan Facility.
Subject to approval of a new lender by all lenders, the total commitments may be increased by up to USD 50 million, according to Eitzen.
The company said it may raise new and additional debt financing on second priority basis to support approved investments after the closing date using the collateral vessels as security.
Completion of the restructuring as set out in the Plan Support Agreement (PSA) is expected to take place by the end of January, and in any event no later than 28 February 2015, the company said.
Under the USD 850 million plan, which purports granting of loans and sale-and-leasebacks, the company’s bondholders are to take over 98% of the company’s debt.
The company intends to change its name to Team Tankers International and is also looking to re-incorporate in Bermuda as part of the restructuring process.