Seanergy Maritime Holdings Corp. Announces Refinancing of two Capesize Vessels
July 09 2018 - 8:00AM
Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”)
(NASDAQ:SHIP) announced today that it has successfully completed
the refinancing of a previous loan facility secured by M/Vs
Lordship and Knightship (the “Facility”). Both vessels are Capesize
bulk carriers built in 2010 in South Korea, purchased by Seanergy
in 2016. The original maturity of the Facility was December 2019.
- M/V Knightship was refinanced in June 2018 through a sale and
leaseback transaction with AVIC International Leasing Co., Ltd., a
major Chinese state-owned financing institution. Seanergy sold and
chartered the vessel back on a bareboat basis for an eight year
period, having a purchase obligation at the end of the eighth year.
The Company has the option to repurchase the vessel at any time
following the second anniversary of the bareboat charter
party.
- M/V Lordship was refinanced in June 2018 through a senior
secured loan facility, which was provided by Blue Ocean maritime
lending funds managed by EnTrustPermal, one of the world's largest
alternative investors regularly engaged in shipping finance
activities. The earliest maturity date of the facility is in 2023
and can be extended until 2025 subject to certain conditions. The
new facility does not include any financial covenants or value
maintenance provisions, and features a put option for the Company
for the sale of the vessel to the lender for a pre-agreed price at
the initial or extended maturity date.
The combined effect of the M/V Knightship and
the M/V Lordship refinancing, concluded on June 29, 2018 and June
13, 2018, respectively, was a capital release in excess of $10
million, of which approximately $1.3 million will be restricted
cash under the new agreements.
Stamatis Tsantanis, the Company's
Chairman & Chief Executive Officer, stated:
“I am very pleased to announce these milestone
transactions for our Company that are significantly enhancing our
liquidity position. We achieved the $10 million capital release
while maintaining the operation of the vessels at lower break-even
rates at a time when the market fundamentals are improving
considerably. In addition, our Company is now considered one of
AVIC’s key business partners in the maritime industry which creates
significant business development opportunities in China. In
addition, the two refinancings will support future cash flow
generation through the extension of the underlying debt maturities.
The released capital from the two refinancings may be used for
additional vessel acquisitions and for general working capital
purposes.
The significant appreciation in the market
values of the two Capesize vessels acquired in 2016 allowed us to
enter into these lucrative financing arrangements that are
beneficial for our shareholders.”
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an international shipping
company that provides marine dry bulk transportation services
through the ownership and operation of dry bulk vessels. The
Company currently operates a modern fleet of eleven dry bulk
carriers, consisting of nine Capesizes and two Supramaxes, with a
combined cargo-carrying capacity of approximately 1,682,582 dwt and
an average fleet age of about 9.2 years.
The Company is incorporated in the Marshall
Islands with executive offices in Athens, Greece and an office in
Hong Kong. The Company's common shares and class A Warrants trade
on the Nasdaq Capital Market under the symbols “SHIP” and “SHIPW”,
respectively.
Please visit our company website at:
www.seanergymaritime.com
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates", and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's ability
to continue as a going concern; the Company's operating or
financial results; the Company's liquidity, including its ability
to pay amounts that it owes and obtain additional financing in the
future to fund capital expenditures, acquisitions and other general
corporate activities; competitive factors in the market in which
the Company operates; shipping industry trends, including charter
rates, vessel values and factors affecting vessel supply and
demand; future, pending or recent acquisitions and dispositions,
business strategy, areas of possible expansion or contraction, and
expected capital spending or operating expenses; risks associated
with operations outside the United States; and other factors listed
from time to time in the Company's filings with the SEC, including
its most recent annual report on Form 20-F. The Company's filings
can be obtained free of charge on the SEC's website at www.sec.gov.
Except to the extent required by law, the Company expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
For further information please
contact:Capital Link, Inc.Paul Lampoutis230 Park Avenue
Suite 1536New York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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