Greek dry bulk owner EuroDry, recently spun out from Euroseas, says it has refinanced the debt on four of its vessels with $30m worth of new loans.
EuroDry has completed the refinancing of 2017-built ultramax Alexandros P with a new seven-year $15m loan facility, which was used to repay the previous loan of $9.9m attached to the vessel and provides additional liquidity to the company.
The company has also signed a definite term-sheet to refinance panamax bulkers Eirini P, Tasos and Pantelis with a new three-year $15m loan facility. The loan, which has a $6.6m balloon payment, will be used to repay about $12m of debt attached to the vessels and add to EuroDry’s liquidity.
Aristides Pittas, chairman and CEO of EuroDry, commented: “We are extremely pleased with the refinancing of the debt of four of our vessels which significantly extends their maturities, reduces our combined interest expense and also provides us with $8 million of extra liquidity. This extra liquidity along with the rest of our funds would allow us to pursue accretive investment opportunities to expand our fleet, further reduce our cost of capital or use them for other general corporate needs. We believe we are at a point in the market cycle where the fundamentals, underpinned by limited supply growth expectations, might turn positive over the next couple of years, and in that context we strive to position EuroDry to maximize the benefits to our shareholders.”