Safe Bulkers, Inc. Enters Into a US $210.0 Million Reducing Revolving Credit Facility Agreement With DNB Bank ASA
Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced that it has entered into a US $210.0 million, six-year, reducing revolving credit facility agreement with DNB Bank ASA, secured by ten vessels.
Under the agreement, the Company will be subject to the following financial covenants which will be measured on a consolidated basis:
The total consolidated liabilities of the Company divided by its total consolidated assets must not exceed 85\%.
The ratio of the Company’s EBITDA1 to its interest expense must be less than 2.0:1 on a trailing 12 month basis.
The consolidated net worth of the Company (total consolidated assets less total consolidated liabilities) must not be less than $150.0 million.
The new credit facility will be used to finance the acquisition of two previously contracted newbuild vessels, scheduled to be delivered to the Company in 2015, and to replace and prolong an existing credit facility with the same lender, presently secured by eight existing vessels.
The Company intends to finance its newbuild program with cash on hand and bank financing. With this reducing revolving credit facility and the other committed credit facilities, the Company has secured bank financing for twelve out of thirteen newbuild vessels on order.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s common stock, series B and series C preferred stock is listed on the NYSE, where it trades under the symbols “SB”, “SB.PR.B”, “SB.PR.C” and “SB.PR.D”, respectively. The Company’s current fleet consists of 31 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire 13 additional drybulk newbuild vessels to be delivered at various times through 2017.
Source: Safe Bulkers, Inc.
