Epic Gas Secures Refinancing for Five LPG Carriers

MoneyIllustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Singapore-based gas carrier owner Epic Gas has completed the refinancing of a further five LPG carriers in partnership with Crédit Agricole Corporate and Investment Bank.

The new USD 34 million facility has a term of five years, and has allowed the company to reduce its margin by 85 bps.

Proceeds from the facility were used to repay amounts outstanding of USD 28.5 million under the existing facilities expiring in 2019. Epic Gas added that the balance of USD 5.5 million will be used for general corporate purposes.

Earlier this year, the company refinanced four vessels through sale-and-lease-back transactions with Japanese ship owners for 5-10 years, reducing interest and amortisation by USD 1.4 million per year.

That leaves Epic Gas with one ship for potential refinancing prior to the loan expiry in November 2019, which has a balloon amount of just USD 6.5 million. There are no further loan expiries before 2022.

“As a result of these transactions, Epic Gas has been able to reduce its annual financial expense, free up capital and optimize its liquidity and capital structure, as its loan to value stands at 51%, a conservative figure for our industry,” Uta Urbaniak-Sage, the Chief Financial Officer of Epic Gas, said.

“Looking ahead, we remain optimistic, as the LPG market is showing signs of gradual improvement and our company is well positioned to benefit from them,” Urbaniak-Sage concluded.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >