CMB signed a $300msenior secured reducing revolving credit facility with DNB Bank ASA and Nordea Bank Norge ASA as lead arrangers and bookrunners, Belfius Bank nv/sa, Fortis Bank sa/nv, KFW IPEX-Bank GmbH and Skandinaviska Enskilda Banken AB (publ) as lead arrangers and ABN Amro Bank N.V., KBC Bank NV and Scotiabank Europe plc as co-arrangers.
Nordea Bank Norge ASA will also act as agent for the facility.
The facility has a term of 6 years and 1 month and bears interest at a rate of LIBOR+3,00%. On the undrawn portion of the facility a commitment fee of 1,00% will be paid. Over the 6 year term the loan amount reduces to USD 140 million. It is expected that at the end of the year 2012 USD 219 million will be drawn under the facility.
The proceeds from this facility will be used to refinance the existing indebtedness under the USD 600 million loan agreement dated 21 December 2005, part-finance the 6 Samjin newbuilding vessels scheduled for delivery in 2013 and 2014 and for general corporate purposes.
The placing of the facility was very successful with an oversubscription of 100%, confirming CMB’s reputation and standing in managing its financial risks in today’s challenging financial markets.
CMB is very pleased that it was able to secure this facility with its mainstay of committed financial institutions. The successful completion also demonstrates the trust that lenders have in CMB and in the way CMB manages its relationship with its core team of bankers.