Euronav NV Gets $1.6B Bank Facility

Thursday, April 14, 2005
Euronav NV signed a $1.6 billion senior secured credit facility with Nordea and DnB NOR acting as lead arrangers, Nordea as sole bookrunner and facility agent and Calyon, Citibank, Deutsche Schiffsbank, HSH Nordbank, Hypo-Vereinsbank, Royal Bank of Scotland and Scotiabank acting as co-arrangers. The credit facility, which was oversubscribed by more than 58%, consists of a term loan of USD 865 million, a non-amortising revolving loan facility of USD 500 million and additional term loan of up to USD 235 million, which will be available for the purpose of financing vessels scheduled to be delivered within the next two years. The credit facilities have 8 year maturity as from the date of closing at a rate of LIBOR +0.80%. On the undrawn portion of the facility, the company will pay a commitment fee of 0.25%.

Upon closing of the credit facilities, all of the company’s existing credit facilities for ships wholly owned will be retired. Outstanding borrowings under the existing credit facilities were USD 494.6 million as of 31st December 2004.

On the closing date, the USD 1,600 million senior secured credit facility will be secured by all of the wholly-owned vessels in the company’s fleet, comprising of 2 ULCCs, 12 VLCCs, 9 Suezmax acquired in conjunction with the Tanklog fleet acquisition, one VLCC newbuilding due to be delivered in May 2005 and 5 Suezmax newbuilding, 3 of which are due to be delivered in 2006 and the last 2 in 2007.

The purpose of the facility is to reduce the overall cost of debt, increase flexibility and decrease associated administrative expenses. Euronav’s success at securing this bank facility emphasizes the confidence the market places in the company and its capability to further grow the company in a profitable manner. Euronav is now very well positioned after having recently expanded its fleet and its earnings potential. Euronav intends to continue to build upon its past success and to operate the large majority of its fleet in the spot market in order to strongly benefit from the current excellent rate environment in the tanker market.


Offshore

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Finance

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Australia Warns DCNS after Security Breach

Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines,

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1093 sec (9 req/sec)