With support from the company’s key lenders, Pacific Radiance said the profile of its term loans has been refinanced to 12 years from an average of seven years previously, and the maturity have largely been extended from 2019 to 2021.
As a result, the group’s loan principal repayment burden will reduce by around $103m over the next three years to 2019. This is expected to enhance the group’s liquidity position and financing cash flows in the near to medium term.
“The timely extension of our long term financial arrangements has secured us a stronger footing to weather this gruelling industry downturn as we await the sector recovery,” said Pang Yoke Min, executive chairman of Pacific Radiance.
Singapore-listed Pacific Radiance said it has been working to proactively strengthen its financials and enhance cashflows since the onset of the industry downturn in late-2014. This included the successful amendment of a financial covenant in November 2015 under the group’s only bond issue due in August 2018.
In addition, the company has not committed to any new capital expenditure for its fleet expansion programme since mid-2014 – the last of the newbuild vessel deliveries that it committed previously is expected to be made by earlt 2017.
The group also recently entered into a settlement agreement to receive the full refund of $10.6m in pre-delivery instalments for the construction of two PSVs.
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