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Safe Bulkers amends DVB Bank credit facility

Safe Bulkers has continued to tweak its repayment schedules by amending its loan with DVB Bank, under which $101.2m is still outstanding.

The amended schedule will halt repayments until 2019, when Safe Bulkers will begin making slightly higher annual repayments than included in the previous schedule, with a balloon payment of $65.2m due in 2021.

To remain in compliance with the amended loan covenant, Safe Bulkers’ total consolidated liabilities must not exceed 90% when divided by its total consolidated assets (including charters) until the end of 2017 and 85% from 2018 onwards.

Safe Bulkers’ consolidated net worth is waived until the end of 2017, subject to the company maintaining a minimum fleet of 30 vessels and not less than $150m in total consolidated liabilities from 2018 onwards.

“The agreement with DVB is the third in a row which provides for alignment of financial covenants and deferral of about $10.5m of debt originally payable until 2018, prorate to years after 2019. With this agreement, the amended facilities represent about 51% of our debt, excluding sale and lease-back financing arrangements and debt from state institutions,” explained Dr. Loukas Barmparis, president of the NYSE-listed company.

The ratio of the company’s EBITDA to its interest expense must also not be less than 2:1 on a trailing 12-month basis from 2018 onwards.

This is the eighth time Safe Bulkers has amended loan facilities with its lenders order “to maintain a comfortable debt repayment profile, at very competitive costs”, as Barmparis stated previously.

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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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