Marine Link
Thursday, October 27, 2016

Maritrans Announces New Financing Agreements

October 10, 2003

Maritrans Inc. announced that the company recently entered into new financing agreements to replace $36.8 million of its existing term debt. This move allows Maritrans to extend its overall debt amortization profile while taking advantage of current low long-term interest rates. The new debt facility consists of two pieces: $7.3 million with a 5-year amortization and $29.5 million with a 9.5-year amortization and a 50 percent balloon payment at the end of the term. The new debt accrues interest at an average fixed rate of 5.53 percent, replacing existing term debt that matured through 2007 with an average current floating rate of 3.22 percent. The new debt is collateralized by two barges and three tugs. The purpose of the new credit facility is to allow the company to better match debt terms and asset lives. Maritrans continues to maintain a $40 million revolving credit facility to fund working capital and capital expenditures during its continuing rebuilding program to convert single-hulled vessels to OPA compliant double-hulled vessels. The revolving credit agreement expires in January 2007.

Maritime Reporter Magazine Cover Oct 2016 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News