Grindrod Shipping Holdings Ltd. Announces New Financing and Delivery of IVS Atsugi
December 22 2020 - 4:05PM
Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or "Company" or “it” or “we” or “our”), a
global provider of maritime transportation services in the drybulk
and product tanker sectors, announced the following transactions.
On December 22, 2020, the Company entered into a
sale and leaseback transaction with a Japanese shipowner relating
to the 2016-built medium range product tanker Matuku for a cash
amount of $26.8 million (before commissions but net of charter
pre-payments). The Company will bareboat charter the vessel back
for a period of up to 15 years and has the right, but not the
obligation, to acquire the vessel beginning in May 2022. The Matuku
constituted the security package for our $27.0 million Senior
Secured Credit Facility scheduled for maturity in 2021, for which
the remaining balance of approximately $17.1 million was repaid in
full in connection with the closing of the transaction. We intend
to utilize the approximately $9.3 million of net proceeds of the
refinancing, together with cash on hand, to repay early $10.0
million of our other $35.8 million Senior Secured Credit Facility,
thereby materially reducing our net interest expense and remaining
scheduled maturities in 2021.
On December 23, 2020, the Company expects to
take delivery of the IVS Atsugi, a Japanese-built eco ultramax
drybulk carrier newbuilding. As previously disclosed, the vessel
will be chartered-in from its owner for a minimum period of two
years with options to extend for up to two additional years, at the
Company’s election. In addition, the Company holds options to
purchase the vessel in the future.
Martyn Wade, the Chief Executive Officer
of Grindrod Shipping, commented:
“The sale and leaseback of Matuku is another
testament of our ability to leverage our long-standing
relationships with leading Japanese industry participants, one of
our company’s distinct competitive advantages. Furthermore, the
addition of the IVS Atsugi to our fleet is in line with our
strategy to focus on Japanese built “eco” vessels, which enjoy
distinct operational and commercial advantages.”
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping owns and operates a
diversified fleet of owned and long-term and short-term
chartered-in drybulk vessels and product tankers. The drybulk
business, which operates under the brand “Island View Shipping”
(“IVS”) includes a fleet of 15 handysize drybulk carriers and 16
supramax/ultramax drybulk carriers on the water, including the IVS
Atsugi. The tanker business, which operates under the brand
“Unicorn Shipping” (“Unicorn”) includes a fleet of three medium
range tankers and one small tanker. The Company is based in
Singapore, with offices in London, Durban, Tokyo, Cape Town and
Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker
“GRIN” and on the JSE under the ticker “GSH”.
Forward-Looking Statements
The statements in this press release that are
not historical facts may be forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The forward-looking statements in this press
release are based upon various assumptions, including, without
limitation, Grindrod Shipping management's examination of
historical trends, data contained in the Company's records and
other data available from third parties. Although the Company
believes that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those discussed in the forward-looking statements.
These risks and uncertainties include, among others, those
discussed in Grindrod Shipping's public filings with the SEC.
Except as required by law, Grindrod Shipping undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events.
Company Contact:Martyn Wade / Stephen GriffithsCEO
/ CFOGrindrod Shipping Holdings Ltd.200 Cantonment Road, #03-01
SouthpointSingapore, 089763Email:
ir@grindrodshipping.com Website:
www.grinshipping.com |
Investor Relations / Media Contact: Nicolas
Bornozis / Daniela GuerreroCapital Link, Inc. 230 Park Avenue,
Suite 1536 New York, N.Y. 10169 Tel.: (212) 661-7566 Fax: (212)
661-7526 Email: grindrod@capitallink.com |
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