Safe Bulkers, Inc. Refinances $70 Million of Loan Facilities
June 21 2021 - 9:00AM
Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
that the Company has entered into a credit facility of $70.0
million with a five-year tenor, comprising of a term loan tranche
of $30.0 million and a reducing revolving credit facility tranche
providing for a draw down capacity of up to $40.0 million, with
respect to seven vessels. The agreement contains financial
covenants in line with the existing loan and credit facilities of
the Company.
The proceeds from the credit facility will
refinance loan facilities of $64.3 million, in respect of eight
vessels maturing in 2023, seven of which will secure the new credit
facility and one of which will remain debt free. The company does
not intend to utilize the full capacity of the revolving credit
facility tranche at this time.
The refinancing transaction was evaluated and
approved by the Board of Directors of the Company, excluding an
independent member of the Board of the Company, who serves as the
Chief Executive Officer of the financial institution that is the
lender in the transaction.
As of March 31, 2021, we had $607.6 million of
outstanding debt. Following voluntary debt prepayments and debt
payments in relation to vessels sales or debt refinancing in the
aggregate amount of $106.9 million, scheduled principal payments of
$4.5 million and loan drawdown of $30.5 million, we had as of June
18, 2021, outstanding debt of $526.7 million. On a pro-forma
basis following this refinancing and assuming no draw down under
the revolving credit facility, we will have outstanding debt of
$500.2 million and availability of $67.5 million under our
revolving credit facilities.
Dr. Loukas Barmparis, President of the Company,
said: “We continue our strategy of gradually deleveraging our
Company and increasing the revolving credit facility component of
our debt, which provides a greater flexibility and lower overall
interest costs, targeting a lower leverage as we continue to
renew our fleet with modern, energy efficient newbuild tonnage or
second-hand tonnage from leading Japanese yards that will replace
older or Chinese-built vessels.”
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
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 2 111 888 400Fax: +30
2 111 878 500E-Mail: directors@safebulkers.com
Investor Relations / Media Contact:Nicolas
Bornozis, President Capital Link, Inc.230 Park Avenue, Suite 1536
New York, N.Y. 10169Tel.: (212) 661-7566Fax: (212) 661-7526E-Mail:
safebulkers@capitallink.com
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