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Safe Bulkers amends ING Bank loan

Safe Bulkers has changed the terms of its existing $32m revolving credit facility with ING Bank, which has been secured by two of the NYSE-listed shipowner’s vessels and has a five-year tenor.

“This is the second agreement we announce targeting to align financial covenants amongst our banks and increase our financial flexibility for the coming years,” said Dr. Loukas Barmparis, Safe Bulkers’ president.

The company’s covenant with ING Bank has been amended to match the terms of its loan from DNB (UK), which it adjusted last week.

Safe Bulkers must maintain consolidated net worth of $150m and a minimum fleet of 30 vessels from 2018 onwards to remain compliant with the amended covenant with ING Bank.

The aggregate market value of the two vessels against which the loan is secured divided by the aggregate outstanding loan value must exceed 110% before the end of 2017 and 120% from 2018 onwards, the Athens-based company said.

Subsequent to the amendment, Safe Bulkers’ total consolidated liabilities divided by its total consolidated assets (including charters) must not exceed 90% up to and including the year-end 2017 and 85% from 2018 onwards.

Safe Bulkers’ ratio of EBITDA to its interest expense must be not less than 2:1 on a trailing 12-month basis from 2018 onwards.

This is the seventh 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.

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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