Grindrod Shipping announces completion of tanker sales and related debt repayments

May 27 2021


Grindrod Shipping Holdings Ltd. (“Grindrod Shipping” or "Company" or “it” or “we”), a global provider of maritime transportation services predominantly in the drybulk sector, announced the completion of the following transactions and related debt repayments.

On April 12, 2021 and April 20, 2021, the Company completed the previously disclosed sales of the 2013-built medium range tankers Leopard Moon and Leopard Sun. In conjunction with the sales, approximately $24.7 million debt remaining on the credit facility with NIBC Bank N.V. was repaid in full. The sales generated net proceeds to the Company of $17.9 million after debt repayment with a further $2.7 million release of restricted cash associated with the loan.

 

On April 14, 2021, the Company completed the previously disclosed sale of the 2009-built small tanker Breede, which constituted part of the security package for our $100.0 million senior secured credit facility and was released from the security package in connection with the closing of the transaction. Approximately $3.8 million debt was repaid on the facility and the sale generated net proceeds to the Company of $3.0 million after debt repayment with a further $0.5 million release of restricted cash associated with the loan.

 

The Company utilized the net proceeds of the aforementioned sales, together with cash on hand, to repay the approximately $25.8 million remaining outstanding amount on the senior secured credit facility with Sankaty maturing in June 2021. The senior secured credit facility was formally terminated on May 21, 2021 upon confirmation of prepayment of all obligations thereunder.

 

Martyn Wade, the Company’s Chief Executive Officer, commented:

“We are very pleased to complete the sales of our last three spot trading product tankers and the full repayment of our credit facility with Sankaty. These sales have significantly reduced our leverage while positioning the Company to further focus on our core handysize and supramax/ultramax drybulk segments. Since the end of 2020, we have reduced our bank loans and other borrowings by approximately $66 million, or ~24%, while concurrently strengthening our liquidity, through a combination of tanker asset sales, scheduled debt amortization, and strong freight market conditions in our drybulk business.”

 

 



Related News

Sovcomflot expands business portfolio with TotalEnergies

(Jul 16 2021)

PAO Sovcomflot (SCF Group) has received confirmation from TotalEnergies of the exercise of its option for two further next-generation 174,000-cbm LNG carriers.



Actions in order to strengthen Concordia Maritime’s financial position and liquidity

(Jul 16 2021)

Concordia Maritime AB (publ) (”Concordia” or the “Company”) has agreed upon a conditional agreement with Stena Bulk AB (”Stena Bulk”), or a nominated company within the group of companies, on time charter of all of the Company’s ten P-MAX product tan...



Capital increase in TORM in connection with delivery of vessel

(Jul 09 2021)

With reference to Company Announcement no. 03 dated 01 March 2021 regarding the acquisition of eight 2007-2012 built MR product tanker vessels from Team Tankers Deep Sea Ltd, TORM plc (“TORM”) has increased its share capital by 730,057 A-shares (corr...



Aurora Tankers and GSB Tankers announce strategic partnership in J19 segment

(Jul 09 2021)

Aurora Tankers, a wholly owned subsidiary of IMC Industrial Group (IMC), announced it has formed a strategic partnership with Golden Stena Baycrest Tankers (GSB), to manage and operate stainless steel tankers.



Lean Marine and Yara Marine Technologies become one

(Jul 09 2021)

Yara Marine Technologies invests in solutions for automated fuel-saving, performance management, and reporting by acquiring full ownership of the Gothenburg-based firm Lean Marine.



June-July 2021

Stena Bulk and decarbonisation - how BHP makes decarbonisation work financially - update on worldwide piracy - managing security risks of ECDIS - tanker inert gas systems