Euronav Completes Maersk VLCC Financing

MarineLink.com
Tuesday, February 04, 2014
A Maersk VLCC: Photo courtesy of Maersk Tankers

In early January 2014, Euronav announced the acquisition of 15 Very Large Crude Carriers (VLCC) from Maersk Tankers Singapore Pte Ltd. for a total acquisition price of $980 million (USD), the executive committee of Euronav NV now announce that  it has issued a $235 million seven-year bond to the same investors who participated in the capital increase of January 13, 2014, and it has signed a commitment letter for a $500 million senior secured credit facility with DNB Bank ASA, Nordea Bank Norge ASA and Skandinaviska Enskilda Banken AB (SEB).

The bonds, which were many times oversubscribed, were issued as an enhancement to the equity to the same investors who participate in the capital increase of $350 million. The bonds have been issued at 85 percent of their principal amount and bear interest at a rate of 5.95 percent per annum for the first year, payable semi-annually in arrears. The interest rate will increase to 8.50 percent per annum for the second and third year and will increase again to 10.20 percent per annum from year four until maturity. The bonds are at any time redeemable by Euronav at par.

The senior credit facility will consist of a $500 million term loan to finance the acquisition of the VLCC fleet of Maersk Tankers Singapore Pte Ltd. The facility was fully underwritten in equal part by DnB, Nordea and SEB and is currently being syndicated. The credit facility has a six-year maturity as from closing of the syndication, a process that usually takes four-five weeks. Borrowings under this facility will bear interest at a rate based on LIBOR plus a margin.

Management further reports that Euronav and GSO Capital Partners LP (which is a division of Blackstone, one of the world’s leading alternative asset managers and advisory firms) have formed a joint venture for the purpose of potentially purchasing some modern high-quality vessels from certain subsidiaries of OSG, who are currently in bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code. If the joint venture is the successful bidder for the assets in the bankruptcy sale process, which is being organized as an auction under Chapter 11, the joint venture will sell the vessels to Euronav shortly after Sellers’ delivery of the vessels. In the event that the sale of the vessels to Euronav is consummated, affiliates of GSO will receive, as part of purchase price paid by Euronav to the joint venture, both bonds and new equity issued by Euronav.

euronav.com
 

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

FURUNO of Japan Increases Investment in ENL

ENL Group and FURUNO Electric Co. Ltd of Japan have announced that FURUNO has increased its investment into the New Zealand company to a total of 29.5%. The

SKANReg Recruits UK Ship Register's Mazumdar as CEO

After four groundbreaking years as head of the UK Ship Register (UKSR), Debasis Mazumdar is moving on to become CEO of the London-headquartered St Kitts & Nevis International Ship Registry (SKANReg),

S.Africa Considering Ship-Based Power Generation

South Africa could deploy power barges using gas to generate electricity to help overcome chronic supply shortages, a senior government official said on Tuesday.

Finance

FURUNO of Japan Increases Investment in ENL

ENL Group and FURUNO Electric Co. Ltd of Japan have announced that FURUNO has increased its investment into the New Zealand company to a total of 29.5%. The

Pressure for Australia Sub Deal Grows

Australia to spend A$65 bln on ships and subs over 20 years; PM pledges A$40 bln for domestic shipbuilders. Australia will spend A$89 billion ($65 billion) on

S.Africa Considering Ship-Based Power Generation

South Africa could deploy power barges using gas to generate electricity to help overcome chronic supply shortages, a senior government official said on Tuesday.

News

FURUNO of Japan Increases Investment in ENL

ENL Group and FURUNO Electric Co. Ltd of Japan have announced that FURUNO has increased its investment into the New Zealand company to a total of 29.5%. The

SKANReg Recruits UK Ship Register's Mazumdar as CEO

After four groundbreaking years as head of the UK Ship Register (UKSR), Debasis Mazumdar is moving on to become CEO of the London-headquartered St Kitts & Nevis International Ship Registry (SKANReg),

Pressure for Australia Sub Deal Grows

Australia to spend A$65 bln on ships and subs over 20 years; PM pledges A$40 bln for domestic shipbuilders. Australia will spend A$89 billion ($65 billion) on

Vessels

SKANReg Recruits UK Ship Register's Mazumdar as CEO

After four groundbreaking years as head of the UK Ship Register (UKSR), Debasis Mazumdar is moving on to become CEO of the London-headquartered St Kitts & Nevis International Ship Registry (SKANReg),

LNG Ferry Construction for Tallink Begins

The start of production of Tallink's new generation LNG powered fast ferry for the Tallinn-Helsinki route was celebrated on the 4th of August 2015 at Meyer Turku shipyard.

NYK Hosts Safety Conference

Over three dates in July, NYK hosted a safety promotion conference for shipowners and ship-management companies at the NYK head office in Tokyo and at Imabari city in Ehime prefecture.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Sonar
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: 0.2099 sec (5 req/sec)