Ardmore Shipping has received senior secured term loan commitments of $364 million across two facilities. The first facility consists of $213 million of funded debt from ABN AMRO and DVB Bank, including an incremental commitment of $20 million to fund future acquisitions. The second facility consists of $151 million of funded debt from Nordea Bank and Skandinaviska Enskilda Banken.
The refinancing will reduce Ardmore’s interest expense by approximately $2 million in 2016 and improve the company’s surplus cash flow by approximately $6 million over the same period.
“This opportunistic refinancing on attractive terms reflects the company’s strong banking relationships and improving financial profile, as well as the successful completion of a newbuilding program that has more than doubled the size of our fleet since our IPO with the addition of new, state-of-the-art, Eco-design vessels,” said Anthony Gurnee, Ardmore’s chief executive officer.
Ardmore, based in Cork, Ireland, owns and operates a fleet of mid-size product and chemical tankers ranging from 17,500 to 50,300 deadweight tonnes. The company provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of tankers.