Grindrod Extends IVS Bulk JV
Singapore based shipowner and operator Grindrod Shipping announced a number of transactions relating to the extension of its IVS Bulk joint venture, implementation of a financing arrangement and a fleet update.
Grindrod Shipping has extended the termination date of its IVS Bulk joint venture from September 30, 2019 to November 30, 2019.
"We continue to progress the transaction agreed in principle with the joint venture partners whereby the company would acquire an additional 33.25% stake from one of the partners with the other partner retaining its 33.25% stake, as well as the negotiations with lenders to refinance all of the existing debt of IVS Bulk and provide us sufficient capital to acquire the additional 33.25% stake. We can provide no assurance that we will complete the acquisition until such time that agreements have been finalized and the financing has been obtained," said a statement from
On September 20, 2019, Grindrod closed the previously announced financing arrangement with a Japanese shipowner relating to the 2011-built handysize drybulk carrier, IVS Kinglet, for a cash amount of $12.5 million (before commissions but net of charter pre-payments).
Grindrod will bare-boat charter the vessel back for a period of up to 12 years and has the right, but not the obligation, to acquire the vessel from the end of the second year of the charter, with the new owner having the right, but not the obligation, to sell the vessel to the company at the end of the 12 year charter period.
The IVS Kinglet previously 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. At closing, the sale generated approximately $6.3 million of cash for the Company after settling the debt associated with the vessel.
On September 26, 2019, Grindrod took delivery of the IVS Prestwick, the second of the two owned Japanese-built ultramax “eco” newbuildings that the company agreed to acquire in May 2018. In conjunction with the delivery, the company drew down the remaining $15.7 million of the combined $31.4 million senior secured credit facility with IYO Bank.
Martyn Wade, the company’s Chief Executive Officer, said: “The delivery of the IVS Prestwick marks the successful completion of another owned newbuilding program in Japan. Together with her sistership the IVS Okudogo, which we took delivery of in August 2019, these vessels represent the latest in fuel efficient designs, in line with our strategy to operate a high quality Japanese-built fleet. Capitalizing on our long-standing relationships with Japanese industry players, we have continued to strengthen our liquidity by completing the previously announced financing arrangement with respect to the IVS Kinglet on attractive terms.