Safe Bulkers, Inc. concludes refinancing actions and provides updated debt profile
November 15 2018 - 4:05PM
Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
that the Company has accepted an offer letter to refinance a loan
facility of $51.4 million secured by 4 vessels, part of which would
expire in 2022, by extending the relevant tenor by 2 years and
pushing back the balloon payments to 2024, concluding the Company’s
refinancing actions.
Upon completion of all loan documentation the
repayment schedule of the Company on a pro-forma basis is presented
in Table 1, in comparison with the repayment schedule as of
September 30, 2018.
|
Table 1: Repayment Schedules on an
annual basis |
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
Pro-forma schedule |
12.5 |
56.0 |
62.9 |
81.5 |
83.1 |
72.3 |
193.8 |
32.9 |
1.3 |
14.4 |
610.7 |
Schedule as of September 30, 2018 |
2.4 |
64.5 |
70.2 |
133.7 |
216.2 |
19.5 |
19.1 |
14.1 |
1.3 |
14.4 |
555.4 |
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2018, the total debt1 of
$555.4 million was secured by 37 vessels, whereas following the
refinancing the total debt on a pro-forma basis is $610.7 million
secured by 39 vessels. The average margin2 following the
refinancing is expected to be 211bps.
The refinanced facilities contain financial
covenants in line with the existing loan and credit facilities of
the Company.
Dr. Loukas Barmparis, President of the Company,
said: “Having concluded the refinancing of our debt in close
cooperation with our lenders, we believe that we have a comfortable
debt profile which provides for one of the lowest cash break-even
points in our industry for the following five years. Our
consolidated leverage3 was 55% for an 8.1 year average-aged fleet
as of the end of the third quarter 2018. The additional liquidity
will provide financial flexibility to us and is expected to be used
for financing our environmental investments including scrubbers and
ballast water treatment systems and for general corporate purposes
including acquisitions.”
_____________________________________1 Total
debt includes deferred financing costs.2 Excludes sale and lease
back agreements3 Consolidated leverage is a non-GAAP measure and
represents total consolidated liabilities divided by total
consolidated assets. Total consolidated assets are based on the
market value of all vessels (before BWTS and scrubber
installation), owned or leased on a finance lease taking into
account their employment, and the book value of all other
assets.
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 Exchange Act of 1933, as amended, and
in Section 21E of the Securities 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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