This excluded (i) an aggregate write-off of $9 mill of deferred financing fees and (ii) a $0.2 mill unrealised gain on derivative financial instruments.
The adjustments resulted in an aggregate reduction of the company's net loss by $8.8 mill, as the company recorded a net loss of $27.1 mill in 3Q16.
STI’s adjusted net income was $88.1 mill, which excluded (i) a gain of $1.2 mill resulting from the sale of the company's investment in Dorian LPG, (ii) a gain of $1.4 mill resulting from the early termination of the contract on a timechartered-in vessel, (iii) a reserve of $1.4 mill for a pool bunker supplier in bankruptcy, (iv) a $2 mill write-off of deferred financing fees, (v) a loss on the sale of a vessel of $2 mill, (vi) an unrealised loss on derivative financial instruments of $35,000 and (vii) a gain of $46,000 resulting from the repurchase of $1.5 mill face value of the company's convertible senior notes, due 2019.
The adjustments resulted in an aggregate increase of STI's net income by $2.9 mill. Thus for 3Q16, the company reported net income of $85.2 mill.
For the first nine months of 2016, STI's adjusted net income was $18.7 mill, which excluded (i) a $2.1 mill loss on sales of vessels, (ii) an aggregate write-off of $14.5 mill of deferred financing fees, (iii) a $1.6 mill unrealised gain on derivative financial instruments and (iv) a $1 mill aggregate gain recorded on the repurchase of $10 mill aggregate principal amount of the convertible notes.
The adjustments resulted in an aggregate increase of net income by $14 mill. Thus for the nine month period, STI recorded net income of $4.8 mill.
STI’s adjusted net income in the 2015 period was $184.9 mill and the net income was $183.5 mill.
Since the end of 3Q16, this month, STI received a commitment from HSH Nordbank for a loan facility of up to $34 mill, which is expected to be used to refinance the existing debt on two MRs.
The loan has a final maturity of five years from the first drawdown date, and bears interest at LIBOR plus a margin of 2.5% per annum. The availability is expected to be used to finance up to 60% of the fair market value of the respective vessels.
In October, STI timechartered-in a 2006 built MR for one year at $13,500 per day. The company also has an option to extend the charter for an additional year at $15,000 per day.