New York-listed shipowner Safe Bulkers has reduced debt and pushed out maturities with a new finance package from Piraeus Bank.

The Greek company said it had arranged a term loan tranche of $30m and a revolving credit facility of up to $40m, secured by seven ships.

The facilities refinance loans of $64.3m, tied to eight bulkers, maturing in 2023. One of these vessels will now be debt-free.

"The company does not intend to utilise the full capacity of the revolving credit facility tranche at this time," Safe Bulkers said.

The deal was evaluated by all directors apart from Christos Megalou, Piraeus Bank's chief executive.

Debt going down

As of 31 March, Safe Bulkers had $607.6m of outstanding debt.

But the company has since made voluntary debt repayments after vessel sales or other debt refinancing worth $106.9m, plus scheduled principal payments of $4.5m.

The shipowner also drew down $30.5m from another loan facility. This brought the debt figure to $526.7m.

Following the latest refinancing, however, this has shrunk to $500m, at least until the revolver is drawn on.

A total of $67.5m is available under this and other revolvers.

Loukas Barmparis, president of the company, said: "We continue our strategy of gradually deleveraging our company and increasing the revolving credit facility component of our debt."

He added that this provides greater flexibility and lower overall interest costs.

Vessels being replaced

The bulker owner will continue to lower debt as it renews the fleet with modern, energy-efficient newbuilding tonnage or secondhand tonnage from leading Japanese yards to replace older or Chinese-built vessels, Barmparis said.

Earlier in June, the company said it was buying a 2013-built panamax of 78,000 dwt for $22m.

The Japanese-built vessel will join the fleet by August. The company is using cash reserves to acquire the ship.

TradeWinds had previously reported that Safe Bulkers had sold the 76,000-dwt panamax Maria (built 2003), one of its three oldest vessels, to undisclosed buyers for $12.3m.

The ship, which is set for delivery in August, is the fifth panamax or kamsarmax that the Polys Hajioannou-led company has divested since February.