Epic Gas has completed the refinancing of five LPG carriers with Crédit Agricole Corporate and Investment Bank.
The $34m facility has a term of five years, and has allowed the company to reduce its margin by 85 bps.
Epic Gas will use the proceeds to repay $28.5m of outstanding existing facilities expiring in 2019. The remaining $5.5m will be used for general corporate purpose.
Epic Gas has refinanced nine vessels this year, having refinanced four vessels through sale and leaseback transactions with Japanese owners earlier this year.
“These refinancings reflect the ability Epic Gas has to tap into alternative sources of capital and take advantage of its long standing industry and banking relationships. As a result of these transactions, Epic Gas has been able to reduce its annual financial expense, free up capital and optimize its liquidity and capital structure, as its loan to value stands at 51%, a conservative figure for our industry. Looking ahead, we remain optimistic, as the LPG market is showing signs of gradual improvement and our company is well positioned to benefit from them,” said Uta Urbaniak-Sage, CFO of Epic Gas.
Epic Gas currently operates a fleet of 28 LPG carriers.