Bermuda-based tanker shipping company Nordic American Tankers (NAT) has entered into a five-year USD 306 million senior secured credit agreement arranged by CSG Investments.
Funded by Beal Bank of Dallas, Texas, the loan will retire the present revolving credit facility in full, the company said.
“The new credit will see the effective interest be reduced compared to what was paid under the old RCF at the end of 2018. It is also lower than what was indicated to us for the Secured Bond we contemplated in 2018 and the Back-Stop facility that was cancelled in 3Q18. The arrangement is positive for NAT,” the company said.
“The financing will continue to secure a competitive cash break-even rate for NAT. More importantly, the new loan allows NAT greater flexibility in setting dividend payments.”
As disclosed, the new US-based debt facility combined with the company’s three leased 2018 newbuildings, allows for all major financing aspects of the shipowner to get settled.
NAT noted that its debt level was always among the lowest in the industry, adding that its board strives to further reduce the debt to a level that NAT maintained a few years ago.
The announcement comes after the company posted a net loss of USD 38 million for the third quarter of 2018. NAT plans to release 4Q 2018 results on February 19.
The company is bullish on the future prospects amid solid market fundamentals in the Suezmax sector.
Source: World Maritime News.