The Monaco-headquartered provider of marine drybulk transportation services Safe Bulkers Safe Bulkers has sold and leased back eight ships to refinance $105.2m in loans coming due in 2023 and 2025.
The New York-listed bulker owner said that it will receive $158.3m in proceeds from the transaction.
Under the arrangements, two vessels were leased back, under bareboat charter agreements, for a period of six years and six vessels were leased back under bareboat charter agreements, for a period of eight years.
Four of such arrangements contemplate a purchase obligation at the end of the bareboat charter period and purchase options commencing three years following commencement of the bareboat charter period, and the remaining four arrangements contemplate a purchase option five years and nine months following commencement of the bareboat charter period, all at predetermined purchase prices.
The sale and leaseback agreements provide additional liquidity of $53.1 million. The agreements contain financial covenants in line with the existing loan and credit facilities of the company.
In addition, Safe Bulkers has entered into a three-year unsecured revolving credit facility providing for a draw down capacity of $15 million.
As of January 15, 2020, the company had liquidity of $143.6 million consisting of $113.8 million in cash and bank time deposits, $14.8 million in restricted cash and $15.0 million available under the unsecured revolving credit facility.
Dr. Loukas Barmparis, President of the Company, said: “These recent financing arrangements have strengthened our liquidity position, which now exceeds $140 million, and provide us with financial flexibility to take advantage of opportunities that may arise.”
