Stealthgas gets $140m financing for newbuildings

Stealthgas gets $140m financing for newbuildings

NASDAQ-listed Stealthgas has received commitments from unnamed lenders for two senior secured credit facilities worth a combined $140m, which will be used to fund four 22,000-cbm LPG carrier newbuildings.

The semi-refrigerated vessels are under construction at Hyundai Mipo in South Korea, and are all scheduled for delivery in 2017.

The loans will finance around 65% of the vessels’ contract prices, or up to 70% of the contract prices based on the employment status of the vessels upon drawdown, Stealthgas said today.

The two facilities each consist of two tranches, which will mature eight years after delivery of the respective vessels.

“We are very pleased to announce the commitment of these credit facilities which were selected by our Company after careful examination of several loan offers from various lenders. We are confident that we chose the most competitive ones despite tight credit market conditions and therefore secured the financing of our remaining orderbook in the most efficient way,” said Michael Jolliffe, StealthGas’ chairman.

“Now with a fully funded orderbook, our focus is to continue with the successful delivery of our remaining eco-newbuildings so as to maximize returns for our investors.”

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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