NAT gains new capital structure

Feb 15 2019


Nordic American Tankers (NAT) has signed a five-year $306 mill senior secured credit agreement arranged by CSG Investments and funded by Beal Bank of Dallas, Texas.

The loan will retire the present revolving credit facility (RCF) in full, NAT claimed.

It will also see the effective interest be reduced, compared to what was paid under the old RCF at the end of 2018. The terms were also lower than what was indicated to the company for the secured bond contemplated in 2018 and the Back-Stop facility that was cancelled in 3Q18.

The new loan will amortise as per a 20-year profile with full maturity after five years.

NAT said that the financing will continue to secure a competitive cash break-even rate. More importantly, the new loan allows the company greater flexibility in setting dividend payments, it claimed.

With this new US-based debt facility, together with the NAT-leased three 2018 newbuildings, all major financial aspects are efficiently settled, the company claimed.

The investment banking arm of Arctic Securities assisted NAT in the transaction.

 



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