Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced that the Company has entered into a new credit facility of $60.0 million with a five-year tenor secured with five vessels, comprising of a term loan tranche of $30.0 million and a revolving credit facility tranche providing for a draw down capacity of up to $30.0 million reducing from its fourth year onwards. This agreement represents the Company’s first sustainability linked credit facility and incorporates an incentive discount on interest rate, linked to independently verified pre-determined emission targets.
The proceeds from the credit facility will refinance loan facilities with the same financial institution of an outstanding term loan tranche of $71.1 million and a revolving credit facility tranche with a drawdown capacity of $6.5 million, presently secured by six vessels and maturing in 2024, five of which will secure the new credit facility and one of which will remain debt free. The company does not intend to utilize the full capacity of the reducing revolving credit facility tranche at this time. The agreement contains financial covenants in line with the existing loan and credit facilities of the Company.
Dr. Loukas Barmparis, President of the Company, said: “This is a further action towards deleveraging, while at the same time the Company strengthens its balance sheet and maintains its financial flexibility through the existing cash reserves and the agreed undrawn revolving credit facilities. We expect that by the end of the year if the charter market continues to perform, we will reach a leverage ratio that we consider optimum.”
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s common stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.
Source: Hellenic Shipping News