Athens: Oslo-listed American Shipping Company has secured commitments from four banks for refinancing $500m of its secured debt.
Two separate facilities have been negotiated. BNP Paribas, Credit Agricole, SEB and Wells Fargo will provide a tranche of $350m, and another a $150m facility has been secured from CIT Maritime Finance. The average weighted tenor of the facilities is six years.
“The refinanced debt provides attractive financing terms to AMSC and significantly increases financial flexibility going forward. Reduced interest cost and lower amortization provides AMSC with substantially higher dividend capacity in the future,” said Pål Lothe Magnussen, president and CEO of AMSC, in a statement.
The refinancing deal is expected to close this quarter.