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Navig8 Product Tankers gets $128.5m loan for LR1 newbuildings

Navig8 Product Tankers has agreed a $128.5m secured loan from Credit Agricole Corporate and Investment Bank (CACIB) and BNP Paribas, which will finance four of the six 74,000-dwt LR1 product tankers being built for Navig8 in South Korea.

The sextet were ordered in 2014 for around $45m each from STX Offshore & Shipbuilding and are due for delivery this year.

The initial $64.3m loan from CACIB, which was announced in November 2015, covered the first two newbuilding contracts at STX. The third and fourth newbuilding contracts have been financed under the extended loan facility.

Navig8 says the debt financing will cover approximately 65% of the contract price of each of these four vessels.

Another four LR1s are under construction at SPP in South Korea, also for delivery in 2016, but will not be financed with the amended loan.

“Thus far, we have closed senior debt and sale and leaseback financings for 19 vessels, including the vessels that will be financed under the amended facility with Credit Agricole and BNP Paribas,” Nicolas Busch, CEO of Navig8 Product Tankers, said in a release today.

“We are also excited to continue to take delivery of our vessels on schedule and that the Navig8 Excelsior and Navig8 Stability have delivered into a strong product tanker market.”

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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