As previously announced, Navig8 Product Tankers, an international shipping company focused on the transportation of petroleum products, has recently taken delivery of two product tankers from STX Offshore & Shipbuilding and Sungdong Shipbuilding and Marine, respectively. Both vessels will enter and be operated in commercial pools managed by the Navig8 Group. Overall, the company has taken delivery of two LR2 and two LR1 product tanker new buildings thus far and anticipates that its entire new building fleet will be delivered by the end of 2016.
Separately, the company has entered into an amended secured commercial loan facility for $128.5 million with Credit Agricole Corporate and Investment Bank and BNP Paribas to provide additional financing for LR1 74,000 DWT product tankers being built at STX Offshore & Shipbuilding.
“We are pleased to report that we have completed further steps to finance our newbuilding program,” said Nicolas Busch, CEO of Navig8 Product Tankers. “Thus far, we have closed senior debt and sale and leaseback financings for 19 vessels, including the vessels that will be financed under the amended facility with Credit Agricole (CICIB) and BNP Paribas. We are also excited to continue to take delivery of our vessels on schedule and that the Navig8 Excelsior and Navig8 Stability have delivered into a strong product tanker market.”
The initial $64.3 million loan facility with CACIB, which was announced in November 2015, covered the first two newbuilding contracts at STX. Under the amended loan facility, the third and fourth newbuilding contracts at STX have been financed. The debt financing will cover approximately 65% of the contract price of each of these four vessels.
Navig8 Product Tankers was established in 2013 as a joint venture between the Navig8 Group and DVB Bank to capitalize on anticipated strong supply/demand fundamentals and the accelerating growth of long-haul clean and dirty oil product cargo movements, driven by increasing geographic dislocations between producers and consumers.