Seanergy Maritime in Leaseback, Refinancing Pact with Cargill
The dry bulk cargo shipping company Seanergy Maritime Holdings announced has successfully concluded the refinancing of the 2011-built Capesize M/V Championship through a leasing agreement with Cargill International.
The Nasdaq listed shipping company based in Greece informed that the refinancing has released approximately $7.8 million of liquidity for the Company.
Pursuant to the agreement, the Company has chartered back the Vessel on a bareboat basis and subsequently entered it into a five-year time charter with Cargill at a rate which is linked to the 5-routes Time Charter average of the Baltic Exchange Capesize Index (BCI).
The Charterer will also cover 100% of the equipment and installation cost for retrofitting the Vessel with an exhaust gas cleaning system (a scrubber).
Lastly, as part of the transaction, the Company has issued 1,800,000 common shares to Cargill. This transaction is part of the Company’s scrubber installation and time-charter program announced on October 31, 2018.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, said: "Cargill has been historically one of the major charterers of our Capesize fleet. The vessel refinancing allows us to enhance our liquidity position while drastically reducing the underlying interest cost. Furthermore, the capital investment for the scrubber installation, which will be assumed by the Charterer, is increasing the market value of the Vessel and reflects positively on our NAV."
“Upcoming regulations, such as the global sulphur Cap, require thorough preparation and collaboration between shipowners and charterers. This agreement ensures the Company is compliant with upcoming legislation and adequately positioned to benefit from the potential fuel spread upside that may arise in the global bunker market,” Stamatis added.
The implied financing amount of the Championship is $23.5 million, including $1.6 million in restricted cash, releasing approximately $7.8 million of gross liquidity.
Under the terms of the time-charter party, the Vessel will earn an index-linked rate based on the 5-routes Time Charter average of the Baltic Exchange Capesize Index (BCI).
As part of the time-charter, the charterer will also cover 100% of the equipment and installation cost for retrofitting the Vessel with a scrubber.