Navig8 Product Tankers entered into a $130.3 million senior secured credit facility agreement with Citibank and Caixabank to provide post-delivery financing for four 74,000 DWT LR1 product tankers constructed or under construction at STX Offshore & Shipbuilding.

This includes the Navig8 Experience, which was delivered to the company in March 2016.

The credit facility has two separate tranches — a $26.1 million commercial tranche and a $104.2 tranche inured by Korean Trade Insurance Corporation (K-Sure). Each drawdown from the facility will be comprised of 20% from the commercial tranche and 80% from the K-Sure tranche. The credit facility provides financing of approximately 65% of the contract price of these four vessels.

“With a blended margin over LIBOR below 2%, we are pleased to have secured attractively priced financing for these vessels,” said Nicolas Busch, CEO of UK-based Navig8 Product Tankers. “Thus far, we have raised over $1.3 billion through a combination of equity, senior debt and sale and leaseback financings. We will continue to seek diverse and inexpensive sources of capital as we continue to accept deliveries from our newbuilding program.”