Safe Bulkers Secures New Loan Refinancing Deals

MoneyIllustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Dry bulk shipping company Safe Bulkers has reached refinancing agreements related to two of its credit facilities.

The company has agreed to amend an existing credit facility of USD 160.5 million expiring in 2022, secured by 11 vessels, with a new credit facility of USD 142 million secured by 10 vessels.

The new deal extends the tenor by two years and pushes back part of the balloon payment to 2024. It also reduces the principal installments for the next 4 years by USD 63.3 million, according to Safe Bulkers.

Additionally, the company reached a deal to refinance an existing credit facility of USD 28 million expiring in 2021, with a new credit facility of USD 26 million, extending the tenor by one year. The new credit facility pushes back the balloon payment to 2022 and reduces principal installments for the next 3 years by USD 3.2 million.

“These amended facilities will contain lower margins and similar covenants compared to the existing facilities of the company,” Safe Bulkers said.

The company unveiled the refinancing deals as part of its second quarter financial report. Safe Bulkers delivered a net income of USD 4.1 million for the quarter, compared to a net loss of USD 1.6 million reported in the same period in 2017.

Net revenues for the second quarter of 2018 increased by 34% to USD 47 million from USD 35 million during the same period in 2017. Safe Bulkers’ time charter equivalent rate continued to increase in the quarter as new charters have replaced older expiring charters at higher rates.

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