Hong Kong-based dry bulk shipping company Pacific Basin has closed a USD 325 million 7-year reducing revolving credit facility secured over 50 of the company’s owned ships.
The company informed that the new facility is supported by a syndicate of eight leading international banks, refinances several of Pacific Basin’s existing credit facilities and raises fresh capital on previously un-mortgaged vessels.
Borrowings under the facility will carry a very competitive interest cost of Libor plus 1.5%, significantly extend the company’s overall amortisation profile and enhance its financial flexibility.
Pacific Basin said that the average age of these 50 ships is 11 years and the facility will effectively extend their repayment profile by an additional 11 years to an average age of 22 years.
“The facility further increases our funding flexibility with access to long-term committed funding on a revolving basis for the next seven years at an attractive cost which further reduces our already very competitive vessel P&L breakeven levels,” Peter Schulz, CFO of Pacific Basin, said.
Schultz added that the facility was 40% oversubscribed “reflecting the attraction of our solid balance sheet, corporate profile, business model, track record and reputation.”