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16 June 2016 Grieg Star is pleased to announce that a USD 400 million refinancing for 23 vessels in total has been completed in June 2016. Grieg Star has completed a senior debt refinancing involving extended maturities for the financing of 23 vessels in the fleet. Loans with original expiry set for 2017/2018 were extended with 5 or more years with new expiry being 2021 or beyond. The refinancing was completed with 5 European banks. Together with a sale and leaseback transaction completed earlier this year, a total of USD 400 million of financing facilities has now been refinanced. We operates 45 open hatch and dry bulk vessels of which 31 vessels are on the balance sheet. The completed refinancing ensures long-term financing for all vessels owned by the company. In addition to extending maturities the USD 400 million refinancing will entail a cash release of more than USD 50 million. The added liquidity will together with existing liquidity reserves ensure strong cash reserves and financial strength going forward. Grieg Star has previously secured financing of newbuilding commitments and has currently no unfunded future capital expenditures. Grieg Star CEO Camilla Grieg: We are very pleased to have received continued support from quality financiers like DNB, Nordea, SR-Bank and ABN AMRO including establishing new relationships with Credit Suisse. This refinancing reflects our strong bank relationships and the importance of having capital sources available in a challenging market like what we see today, says Camilla Grieg, CEO of Grieg Star." In a cautious bank financing market Grieg Star believe the completed refinancing illustrates the importance and relative strength of having the right quality sponsors and several capital sources available. By having this refinancing completed combined with healthy contract based revenue Grieg Star is enabled to invest and support continued growth of the business going forward. Grieg Group press release |
