The new credit facility, which is supported by a syndicate of eight leading international banks, refinances several of the leading minor bulks player’s existing credit facilities and raises fresh capital on previously un-mortgaged vessels, it said in a press release.
Borrowings under the facility will carry a very competitive interest cost of Libor plus 1.5%, significantly extend the company’s overall amortisation profile and enhance its financial flexibility.
The average age of these 50 ships is 11 years and the facility will effectively extend their repayment profile by an additional 11 years to an average age of 22 years.
Read More: Pacific Basin picks up another four vessels through $88.5m share-cash deal
Pacific Basin cfo Peter Schulz said: "We are very pleased with the terms of this important new milestone transaction for Pacific Basin. The facility further increases our funding flexibility with access to long-term committed funding on a revolving basis for the next seven years at an attractive cost which further reduces our already very competitive vessel P&L breakeven levels. We are glad that the facility has been supported by first rate banks that are familiar with the shipping industry, including four banks that represent new banking relationships for Pacific Basin.”
He added: “The facility demonstrates Pacific Basin’s strong access to diverse sources of capital. It was 40% oversubscribed reflecting the attraction of our solid balance sheet, corporate profile, business model, track record and reputation which set us apart as a preferred, strong, reliable and safe partner for finance providers, customers and other stakeholders.”
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