Grindrod Shipping Holdings Ltd. Announces Completion of Tanker Sales and Related Debt Repayments Totaling Approximately $54.3...
May 24 2021 - 4:05PM
Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or "Company" or “it” or “we”), a global
provider of maritime transportation services predominantly in the
drybulk sector, announced the completion of the following
transactions and related debt repayments.
On April 12, 2021 and April 20, 2021, the
Company completed the previously disclosed sales of the 2013-built
medium range tankers Leopard Moon and Leopard Sun. In conjunction
with the sales, approximately $24.7 million debt remaining on the
credit facility with NIBC Bank N.V. was repaid in full. The sales
generated net proceeds to the Company of $17.9 million after debt
repayment with a further $2.7 million release of restricted cash
associated with the loan.
On April 14, 2021, the Company completed the
previously disclosed sale of the 2009-built small tanker Breede,
which constituted part of the security package for our $100.0
million senior secured credit facility and was released from the
security package in connection with the closing of the transaction.
Approximately $3.8 million debt was repaid on the facility and the
sale generated net proceeds to the Company of $3.0 million after
debt repayment with a further $0.5 million release of restricted
cash associated with the loan.
The Company utilized the net proceeds of the
aforementioned sales, together with cash on hand, to repay the
approximately $25.8 million remaining outstanding amount on the
senior secured credit facility with Sankaty maturing in June 2021.
The senior secured credit facility was formally terminated on May
21, 2021 upon confirmation of prepayment of all obligations
thereunder.
Martyn Wade, the Company’s Chief Executive
Officer, commented:
“We are very pleased to complete the sales of
our last three spot trading product tankers and the full repayment
of our credit facility with Sankaty. These sales have significantly
reduced our leverage while positioning the Company to further focus
on our core handysize and supramax/ultramax drybulk segments. Since
the end of 2020, we have reduced our bank loans and other
borrowings by approximately $66 million, or ~24%, while
concurrently strengthening our liquidity, through a combination of
tanker asset sales, scheduled debt amortization, and strong freight
market conditions in our drybulk business.”
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping predominantly owns and
operates a diversified fleet of owned and long-term and short-term
chartered-in drybulk vessels. 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. The Company also owns one medium range product tanker on
bareboat charter. 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.
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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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