The facility is an extension of the company’s existing term loan with Danish Ship Finance and is secured by the same 19 vessels currently secured under the original financing.
Borrowings under the new facility will carry an interest cost of LIBOR plus 1.50%, extend the company’s overall amortization profile and enhance its financial flexibility.
Peter Schulz, CFO of Pacific Basin, said, “We are very pleased with the terms of this additional new tranche to our existing term loan facility which further consolidates our funding flexibility with access to long-term committed funding for the next seven years at an attractive cost which contributes to our competitive vessel P&L break-even levels. We appreciate the continued support of Danish Ship Finance with whom we have enjoyed an excellent relationship since 2009.”
Pacific Basin Shipping owns and operates modern Handysize and Supramax dry bulk vessels, running around 210 dry bulk ships, 111 of which are owned by the company.