Safe Bulkers to Amend $51.8 Mln Loan Facility With Unicredit
Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced today that the Company has agreed to amend an existing loan facility secured by four vessels with an outstanding balance of US $51.8 million, delaying the balloon payment initially scheduled to be made in 2019 for 2022.
This loan facility with Unicredit contains the following financial covenants, in line with the existing loan and
credit facilities of the Company:
* The total consolidated liabilities of the Company divided by its total consolidated assets must not exceed 85%.
* The aggregate market value of the four vessels under the facility divided by the aggregate outstanding loan value must exceed 110% until year end 2017 and 120% from 2018 onwards.
* The ratio of the Company’s EBITDA1 to its interest expense must be not less than 2.0:1 on a trailing 12 month basis, applicable from 2018 onwards.
* The consolidated net worth of the Company (total consolidated assets less total consolidated liabilities) must not be less than US $150.0 million.
The old repayment schedule and the new repayment schedule are presented in Table 1 below:
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Table 1: Repayment Schedule on annual basis in US$ million.
|
|
|
2016 |
|
2017 |
|
2018 |
|
2019 |
|
2020 |
|
2021 |
|
2022 |
|
Total |
|
Old facilities |
|
1.0 |
|
3.3 |
|
5.5 |
|
31.2 |
|
1.0 |
|
1.0 |
|
8.8 |
|
51.8 |
|
New facility |
|
0.2 |
|
0.5 |
|
0.5 |
|
6.3 |
|
6.3 |
|
6.3 |
|
31.7 |
|
51.8 |
Dr. Loukas Barmparis, President of the Company, said: “This is the fourth consecutive agreement, designed to reduce the principal installments payable in the next four years and push back balloon payments after 2020 in line with the Company’s policy to maintain a comfortable debt repayment profile, at very competitive costs.