Gener8 Maritime Borrows 1.54 Billion

New York-headquartered crude tanker owner and operator Gener8 Maritime, Inc. has arranged two separate credit facilities worth up to USD 1.544 billion to finance the construction of 15 Very Large Crude Carriers (VLCCS) under construction in South Korean shipyards, and to refinance previous senior secured credit facilities with Nordea Bank Finland.

Gener8 Maritime has entered into a senior secured credit facility for up to USD 963.7 million of debt financing for its VLCC newbuilding program to be drawn in connection with the deliveries of the vessels.

The refinancing facility to cover the previous facility with Nordea Bank provided USD 581 million in term loans, which were drawn on September 8, 2015. The facility replaces two existing senior secured credit facilities with an aggregate outstanding principal amount of USD 656.3 million, and is secured by 25 of the Gener8 Maritime’s vessels currently on the water.

“These agreements represent a key strategic milestone for our company as these financing commitments are expected to complete the funding for our 15 Korean ECO VLCC newbuildings, with no expected need to raise additional debt or equity as we take delivery of these newbuildings,” Gener8 Maritime’s Chairman, Peter Georgiopoulos, said.

Gener8 Maritime expects to enter into a separate credit facility to complete the funding for its 6 Chinese newbuildings.

The Korean newbuild facility has four separate tranches and the debt financing will be secured by Gener8 Maritime’s 15 Korean VLCC newbuildings. The weighted average amortization profile of the facility will be approximately 12.9 years when fully drawn.

Leonidas Vrondissis, Gener8 Maritime’s Chief Financial Officer, said: “With the financing for our 15 Korean ECO VLCC newbuilds complete and our existing senior secured credit facilities refinanced, the company is well positioned to focus on the deliveries of these newbuilds and to continue to execute upon our strategy laid out during our IPO. We believe that the ability to raise over USD 1.5 billion in financing demonstrates the commitment and support we have from our lenders and their belief in the prospects of our industry.”

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