Seanergy Maritime Holdings Corp. Announces Full Prepayment of a Senior Credit Facility and Reduction of Junior Facilities Res...
March 04 2021 - 9:10AM
Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today that it has come to an agreement with one of its
lenders, Entrust Global, for the early prepayment of a credit
facility secured by a first priority mortgage on one of its
Capesize vessels, the M/V Lordship (the “Facility”).
The outstanding balance of the Facility is $21.6
million and is scheduled to be repaid with immediate effect. The
initial earliest maturity date is in June 2023. The average
applicable coupon through the remaining term of the Facility is
approximately 10%.
Following the prepayment and assuming no
refinancing of the M/V Lordship, the interest savings for the
Company would be expected to be $1.3 million for the remaining of
2021 and $1.8 million on average per year for 2022-23.
Additionally, annual repayments would be reduced by approximately
$2.5 million on average, which would positively impact the average
break-even rate of the Company’s fleet.
In addition, a significant portion of the
Company’s junior / unsecured facilities has also been prepaid since
the beginning of 2021 pursuant to the mandatory prepayment terms of
those facilities, resulting in further reduction in the interest
expense. Specifically, a $12.0 million prepayment has been applied
against the junior / unsecured loans with an applicable interest
rate of 5.5%, resulting in expected annual interest savings of
approximately $660,000.
The prepayment amounts were funded with cash on
hand.
Stamatis Tsantanis, the Company's
Chairman & Chief Executive Officer, stated:
“We are pleased to announce these transactions
for the Company, where the immediate reduction of our financial
expenditure will have a direct positive reflection on the Company’s
profitability. At the same time, the average break-even of the
fleet will be significantly reduced, enhancing our cash-flow
generating capacity. Assuming no immediate refinancing, the
expected cash-flow benefit for Seanergy will be approximately $4.9
million per year.
During the first quarter of 2021, the Capesize
daily spot rates have increased to approximately double their
historical 5-year averages. Based on the prevailing Capesize market
fundamentals, we strongly believe that the next years will be one
of the most favorable periods for Capesize vessels. Seanergy will
continue to pursue strategic opportunities that will improve our
shareholders’ returns in the years to come.”
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the US. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. Upon delivery of the new vessel, the
Company's operating fleet will consist of 12 Capesize vessels with
an average age of 12.2 years and aggregate cargo carrying capacity
of approximately 2,103,042 dwt. The Company is incorporated in the
Marshall Islands and has executive offices in Glyfada, Greece. The
Company's common shares trade on the Nasdaq Capital Market under
the symbol "SHIP", its Class A warrants under "SHIPW" and its Class
B warrants under “SHIPZ”.
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 operating
or financial results; the Company's ability to continue as a going
concern; the Company’s liquidity, including its ability to service
its indebtedness; 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; risks associated with
the length and severity of the ongoing novel coronavirus (COVID-19)
outbreak, including its effects on demand for dry bulk products and
the transportation thereof; and other factors listed from time to
time in the Company's filings with the SEC, including the
Registration Statement and 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. Daniela Guerrero 230 Park
Avenue Suite 1536 New York, NY 10169 Tel: (212) 661-7566 E-mail:
seanergy@capitallink.com
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