Norwegian car carrier player Höegh Autoliners said it has received approval from nine Nordic and European banks for an up to $400m senior secured loan that will be used to pay off its existing credit facility.
As a result, the planned transaction will see the Oslo-listed company release a total of 10 ships from its collateral package, leaving 13 vessels built between 1995 and 2005 with an aggregated market value of $437m unencumbered.
The shipowner added the refinancing would also result in increased financial flexibility for the company as it would provide a reduced annual amortisation from $80m to $52m, reduced margin and extended maturity to January 2028.
Completion of the transaction is expected by June 2022.
