Monaco-based dry bulk ship owner and operator Safe Bulkers has reached an agreement with Danmarks Skibskredit A/S (Danish Ship Finance) to amend certain financial covenants and terms to its existing credit facility with an outstanding balance of USD 40 million.
Within the amendment of the term loan facility, the total consolidated liabilities of the company divided by its total consolidated assets charter inclusive should not exceed 90 percent until and including year-end 2017 and 85 percent from onwards.
In addition, the ratio of the company’s EBITDA to its interest expense must be not less than 2.0:1 on a trailing 12-month basis, applicable from 2018 onwards.
The consolidated net worth of the company, defined as total consolidated assets charter inclusive less total consolidated liabilities, is waived until and including year-end 2017 subject to a minimum fleet size of 30 vessels and not less than USD 150 million from 2018 onwards.
Moreover, the aggregate market value of the vessels under the facility divided by the aggregate outstanding loan value should exceed 110 percent until year-end 2017 and 120 percent from 2018 onwards.
“The agreement with Danish Ship Finance is the fourth in a row which provides for alignment of financial covenants and deferral of about $3.4 million of debt originally payable until 2018, to years after 2019. With this agreement, the amended facilities represent about 60% of our debt, excluding sale and lease back financing arrangements and debt from State institutions,” Loukas Barmparis, President of the company, said.