Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today that it has successfully concluded the refinancing
of the 2011-built Capesize M/V Championship (the “Vessel”) through
a leasing agreement with Cargill International SA (“Cargill” or the
“Charterer”). The refinancing has released approximately $7.8
million of liquidity for the Company.
Pursuant to the agreement, the Company has
chartered back the Vessel on a bareboat basis and subsequently
entered it into a five-year time charter with Cargill at a rate
which is linked to the 5-routes Time Charter average of the Baltic
Exchange Capesize Index (BCI). The Charterer will also cover 100%
of the equipment and installation cost for retrofitting the Vessel
with an exhaust gas cleaning system (a “scrubber”).
Lastly, as part of the transaction, the Company
has issued 1,800,000 common shares to Cargill.
This transaction is part of the Company’s
scrubber installation and time-charter program announced on October
31, 2018.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“I am very pleased to announce another landmark
transaction for our Company, and at the same time we are delighted
to welcome Cargill to our shareholding structure, marking the
commencement of a strategic partnership. Cargill has been
historically one of the major charterers of our Capesize fleet.
“The vessel refinancing allows us to enhance our
liquidity position while drastically reducing the underlying
interest cost. Furthermore, the capital investment for the scrubber
installation, which will be assumed by the Charterer, is increasing
the market value of the Vessel and reflects positively on our
NAV.
“Upcoming regulations, such as the global
sulphur Cap, require thorough preparation and collaboration between
shipowners and charterers. This agreement ensures the Company is
compliant with upcoming legislation and adequately positioned to
benefit from the potential fuel spread upside that may arise in the
global bunker market.”
Refinancing of M/V
Championship
The implied financing amount of the Championship
is $23.5 million, including $1.6 million in restricted cash,
releasing approximately $7.8 million of gross liquidity. The
implied interest cost of the transaction is equivalent to
approximately 4.65% all-in, fixed for five years. Based on
the expected weighted average life of the transaction, the
equivalent margin at current swap rates would be LIBOR + 1.50%,
compared to LIBOR + 4.65% under the previous financing
arrangements. The leasing agreement does not include any financial
covenants or value maintenance provisions.
Moreover, the Company has continuous options to
buy back the vessel during the whole five-year leasing period, at
the end of which it has a purchase obligation at $13.5 million.
Time Charter Agreement
Under the terms of the time-charter party, the
Vessel will earn an index-linked rate based on the 5-routes Time
Charter average of the Baltic Exchange Capesize Index (BCI). At any
time during the charter, the Company will have the option of
receiving a fixed daily charter hire for a certain period, based on
the prevailing market level of the forward freight agreement of the
BCI. The firm term of the time-charter matches the firm term of the
leasing transaction that is a period of 60 months, with an
additional period of 18 months at charterer’s option.
Scrubber Financing and Profit Sharing
Agreement
As part of the time-charter, the charterer will
also cover 100% of the equipment and installation cost for
retrofitting the Vessel with a scrubber. On top of the daily hire,
the Company will receive an additional compensation based on the
spread between the price of High-Sulphur Fuel Oil and the price of
Marine Gas Oil or other IMO-compliant and ISO certified Low-Sulphur
Fuel Oil throughout the term of the time charter.
Scrubber technology is an efficient method of
removing both sulphur and particulates from air emissions thereby
protecting human health and reducing acid rain. Research studies
from government organizations and independent companies conclude
that scrubbers are safe and compliant with international
regulations concerning ocean acidity and biodiversity.
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 ten
dry bulk carriers, consisting of nine Capesizes and one Supramax,
with a combined cargo-carrying capacity of approximately 1,625,763
dwt and an average fleet age of about 9.6 years.
Upon the completion of the sale of the Supramax
and the purchase of the new Capesize, as previously announced, the
Company's operating fleet will consist of 10 Capesize vessels with
an average age of 9.6 years and aggregate cargo carrying capacity
of 1,748,638 dwt.
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 Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
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