Source: Lloyd’s List
January 6th 2017
New York- and Euronext-listed Euronav (news, data) said that the credit facility would refinance the $500m senior secured credit facility dated March 25, 2014, and maturing on January 31, 2023, carrying a rate of Libor plus a margin of 2.25%.
“This new facility will provide a lot of flexibility for Euronav,” said Euronav chief finance officer Hugo De Stoop.
“It is a full revolving credit facility replacing a term loan, it has a lower margin than the facility it is refinancing, and it has a much longer maturity,” he said.
He said the leverage was also more attractive and provided additional liquidity to the company.
“We believe that in today’s market, bank loans are the best way to create shareholder’s value for the long term,” he said, adding that the margin, the structure and the fact that it was 2.2 times oversubscribed were a token of Euronav’s solid relationship with a stable group of supporting lenders.
Nordea Bank Norge led the facility and acted as coordinator.
The mandated lead arrangers were ABN Amro Bank, Danish Ship Finance, DNB, ING Bank, Nordea Bank Norge, and Skandinaviska Enskilda Banken.
BNP Paribas Fortis acted as lead arranger, while Commonwealth Bank of Australia, KBC Bank and National Australia Bank acted as co-arrangers.
Euronav said the credit facility would be secured by the following 11 very large crude carriers: 2008-built Nectar, 2012-built Ilma, 2012-built Iris, 2008-built Nautic, 2011-built Sara, 2012-built Sonia, 2011-built Sandra, 2012-built Ingrid, 2009-built Newton, 2008-built Noble, and 2012-built Simone.
The new credit facility comes hot on the heels of the company signing a five-year sale and leaseback agreement for four very large crude carriers worth $186m this week.
“With respect to growth prospects, it appears to us that Euronav is emerging as one of the few shipping companies that can capitalize on the current lackluster asset value environment,” said Deutsche Bank analyst Amit Mehotra.