Grindrod Shipping Holdings Ltd. Announces Closing of IVS Bulk Financing and IVS Phoenix Acquisition
September 17 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 following transactions.
On September 15th, 2021, in conjunction with the
previously announced acquisition of the remaining 31.14% equity
stake in its IVS Bulk joint venture (“IVS Bulk”) and the concurrent
redemption of the IVS Bulk preference shares on September 1, 2021,
the Company closed the $23 million upsizing of one of its existing
IVS Bulk credit facilities to replace the working capital used to
fund the transaction. The new debt is on the same terms as the
existing facility.
On September 16th, 2021, the Company closed the
acquisition and concurrent financing of the 2019 Japanese-built
ultramax bulk carrier IVS Phoenix. As previously disclosed, the
vessel was already in the Grindrod Shipping Core Fleet and
originally chartered-in for a minimum period of three years from
delivery with two one-year extensions and no purchase options. Upon
closing, the Company acquired the vessel for $23.5 million, which
we believe reflects a significantly reduced price relative to
management’s estimate of the fair market value of the vessel due to
the early termination of the prevailing charter agreement. The
Group has simultaneously entered into a financing arrangement with
a separate third party in Japan on attractive terms for a net
amount of $25.0 million. As part of the financing arrangement, the
Group 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 after the first two years of the charter.
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping operates a fleet of owned and
long-term and short-term chartered-in drybulk vessels predominantly
in the handysize and supramax/ultramax segments. The drybulk
business, which operates under the brand “Island View Shipping”
(“IVS”), includes a Core Fleet of 31 vessels consisting 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.
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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