Safe Bulkers Inc (NYSE: SB) Refinances $70 Million of Advance Provisions

Safe Bulkers Inc (NYSE: SB) publicized today that the company has arrived at a credit provision of $70.0 million with a five-year theme. The provision will be encompassing a term loan tranche of $30.0 million and a dipping rotating credit provision tranche providing for a draw depressing volume of up to $40.0 million, with deference to seven receptacles. The arrangement comprises financial agreements in line with the current advance and credit amenities of the company.

The takings from the credit provider will refinance mortgage amenities of $64.3 million, in detail of eight vessels ripening in 2023, seven of which will protect the new credit provision and one of which will linger liability-free. The company does not aim to exploit the whole bulk of the rotating credit facility tranche at this time.

The refinancing deal was assessed and accepted by the company’s Board of Directors. Only one independent director did not participate in this discussion as he functions as the CEO of the monetary organization that is the financier in the deal.

As of March 31, 2021, the company has $607.6 million of unpaid obligations. In addition, they ensure deliberate liability forestallments and obligation expenses about receptacles auctions or obligation refinancing in the collective amount of $106.9 million. 

Loukas Barmparis, President of the Company, said: “We endure our policy of progressively deleveraging our company and snowballing the rotating credit provision constituent of our liability. It offers a better suppleness and lesser general interest charges. We are aiming a lesser influence as we endure to refurbish our fleet with current, energy effectual new build capacity or second-hand capacity from principal Japanese patios that will swap elder or Chinese-built receptacles.”

In other news, the company proclaimed that it had arrived into an arrangement to attain a 2013-built, Japanese, 78,000 dwt Panamax class and dry-bulk receptacle at a value of $22 million with a slated transfer date of August 2021. The cash funds of the company will bankroll the purchase of the receptacle.

Counting this purchase, the company has bid four EEDI-Phase 3 acquiescent, NOx-Tier III new build receptacles, three of which are post-Panamax and one Kamsarmax class. It has also assimilated two Japanese second-hand receptacles, a 2011-built and the 2013-built Panamax class. It has also hawked selectively five mature receptacles.

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