MPC Container Ships Refinances Debt
Container ship opertor MPC Container Ships has entered into a $70 million three-year revolving credit facility agreement with CIT Group. The company said the loan had attractive terms.
MPC Container Ships, registered in Oslo, Norway, said it had already made an initial drawdown of $40 million to refinance existing debt, and the rest would be used for vessel upgrades and other general purposes.
"As a consequence, the previous term loans with Beal Bank and CIT have been repaid in full. Further drawdowns under the facility will strengthen the free liquidity and may be used for vessel upgrades, investments or general corporate purposes," MPC Container Ships said.
MPC Container Ships CEO Constantin Baack said: "Having secured significant charter backlog, we are pleased to add a flexible instrument to our capital structure, whilst adhering to our strategy of moderate leverage.
"By securing the facility we are able to reduce our financing costs and extend the maturity. The agreed structure frees up collateral and enhances financial flexibility going forward. We appreciate the excellent cooperation and support by CIT’s Maritime Finance team over the past years and its expertise and agility in arranging this financing.”
MPC Container Ships was formed in April 2017. It owns and operates a portfolio of container ships serving intra-regional trade lanes. According to info on the company's website, the fleet currently consists of 64 vessels serving charterers worldwide.