The money will be used to refinance 12 MRs, provide post-delivery financing for the company’s six MR newbuilds to be delivered from CSSC OME in 2016 and 2017 and provide $40 mill for general corporate purposes. It is secured by a first priority mortgage on these vessels.
"We are extremely pleased to have received support from this group of quality financiers, including establishing new relationships with BNP Paribas and Danish Ship Finance. With this facility we have lowered our financing costs and hence lowered our cash flow breakeven," explained Mikael Skov, Hafnia Tankers CEO.
The banks involved were ABN AMRO Bank, Danish Ship Finance, Danske Bank and ING Bank, who acted as joint bookrunners and mandated lead arrangers, while BNP Paribas, Nordea Bank Norge, Skandinaviska Enskilda Banken and Swedbank acted as mandated lead arrangers. Nordea acted as Facility Agent.
This facility refinances an existing $340,584,000 credit facility and gives Hafnia significant savings on the interest cost, as well as releases cash, the company said.
The credit facility is comprised of a $124 mill term loan facility, a $100 mill revolving credit facility and a $136 mill delayed draw term loan facility. The credit facility will mature in March 2023 and is priced at LIBOR, plus a margin of 225 bps.