Safe Bulkers, Inc. Refinances $105.2 Million of Existing Loan Facilities
January 16 2020 - 9:20AM
Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
that the Company has entered into sale and leaseback agreements
with respect to eight vessels. The proceeds from the sale and
leaseback agreements are being used to refinance loan facilities of
$105.2 million with terms expiring between 2023 and 2025 and for
general corporate purposes.
The aggregate gross proceeds to the Company in
connection with the sale and leaseback arrangements are $158.3
million. Under the arrangements, two vessels were leased back,
under bareboat charter agreements, for a period of six years and
six vessels were leased back under bareboat charter agreements, for
a period of eight years. Four of such arrangements
contemplate a purchase obligation at the end of the bareboat
charter period and purchase options commencing three years
following commencement of the bareboat charter period, and the
remaining four arrangements contemplate a purchase option five
years and nine months following commencement of the bareboat
charter period, all at predetermined purchase prices. The Company
has assessed that these transactions will be recorded as financing
transactions.
The sale and leaseback agreements provide
additional liquidity of $53.1 million. The agreements contain
financial covenants in line with the existing loan and credit
facilities of the Company. The repayment schedule of the Company on
a pro-forma basis taking into account the refinancing transactions,
in relation to the repayment schedule as of September 30, 2019 is
presented in Table 1.
Table 1: Repayment Schedules on an
Annual Basis (Including Purchase Obligations)($ in
millions)
|
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
Repayment Schedule as of September 30, 2019 |
5.0 |
65.0 |
90.7 |
89.0 |
73.7 |
196.2 |
32.9 |
1.3 |
14.4 |
568.2 |
Pro-forma Repayment Schedule After Refinancing |
2.6 |
64.8 |
91.7 |
90.3 |
78.7 |
185.7 |
65.1 |
14.4 |
26.6 |
619.9 |
In addition, the Company has entered into a
three-year unsecured revolving credit facility providing for a draw
down capacity of $15 million.
As of January 15, 2020, the Company had
liquidity of $143.6 million consisting of $113.8 million in cash
and bank time deposits, $14.8 million in restricted cash and $15.0
million available under the unsecured revolving credit
facility.
Dr. Loukas Barmparis, President of the Company,
said: “These recent financing arrangements have strengthened our
liquidity position, which now exceeds $140 million, and provide us
with financial flexibility to take advantage of opportunities that
may arise.”
About Safe Bulkers, Inc.The
Company is an international provider of marine drybulk
transportation services, transporting bulk cargoes, particularly
coal, grain and iron ore, along worldwide shipping routes for some
of the world’s largest users of marine drybulk transportation
services. The Company’s common stock, series C preferred stock and
series D preferred stock are listed on the NYSE, and trade under
the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.
Forward-Looking Statements This
press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and in
Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events, the Company’s growth strategy and
measures to implement such strategy, including expected vessel
acquisitions and entering into further time charters. Words such as
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates” and variations of such words and similar expressions
are intended to identify forward-looking statements. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct. These
statements involve known and unknown risks and are based upon a
number of assumptions and estimates that 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, changes in the demand
for drybulk vessels, competitive factors in the market in which the
Company operates, risks associated with operations outside the
United States and other factors listed from time to time in the
Company’s filings with the Securities and Exchange Commission. The
Company expressly disclaims any obligations or undertaking to
release 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:
Company Contact:Dr. Loukas
BarmparisPresident Safe Bulkers, Inc.Tel.: +30 2 111 888 400+357 25
887 200E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail: safebulkers@capitallink.com
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