Hafnia Tankers signed a $360 million credit facility with ABN AMRO Bank, Danish Ship Finance, Danske Bank and ING Bank acting as joint bookrunners and mandated lead arrangers. BNP Paribas, Nordea Bank Norge, Skandinaviska Enskilda Banken and Swedbank AB acted as mandated lead arrangers. Nordea acted as facility agent.

The facility refinanced an existing $340.6 million credit facility, provided Hafnia with significant savings on interest cost and released cash to the company.

The credit facility is comprised of a $124 million term loan facility, a $100 million revolving credit facility and a $136 million delayed draw term loan facility. The credit facility will mature in March 2023 and is priced at LIBOR plus a margin of 225 bps.

The credit facility will refinance 12 MR product tankers, provide post-delivery financing for six MR new builds to be delivered from CSSC OME this and next year and will provide $40 million for general corporate purposes. The credit facility was secured by a first priority mortgage on these vessels.

“We are extremely pleased to have received support from this group of quality financiers including establishing new relationships with BNP Paribas and Danish Ship Finance. With this facility we have lowered our financing costs and hence lowered our cashflow break-even,” said Mikael Skov, CEO of Hafnia Tankers.