Norway’s Belships has secured a new loan, which will be used in part to expand its fleet.
DNB Bank, Danske Bank and Sparebank 1 SR-Bank have provided a total of $140m in financing, a filing said on Thursday.
The first $110m tranche of the loan, which is based on a 55% loan-to-value (LTV) ratio, will replace Belships’ current senior debt of $105m.
The company said this portion would be used to strengthen its working capital.
An “accordion” tranche of $30m, based on an LTV of 60%, will be available for fleet expansion.
After operating expenditure, overheads and servicing its debt, Belships said it will be “cash positive” at a rate of around $7,000 daily for the remaining open ship days in the coming 24 months, thanks to its new financial framework.
If it moves ahead with its fleet expansion, Belships has acquisition candidates close to home.
The company has purchase options on three ultramax bulkers it operates on time- and bareboat charters.
These Japan-built vessels have a combined value of $74.1m, according to estimates from VesselsValue.com.
Belships’ owned fleet consists of 12 supramax and ultramax bulk carriers, subsequent to its merger with Lighthouse Shipholding.
The new loan has a margin of 275 basis points with the first downpayment payable in the third quarter 2020.
Mandatory general offer launched
Separately, Frode Teigen's companies Kontrari and Kontrazi are to launch a mandatory general offer to acquire Belships shares on Friday.
The offer will be made at a price of NOK 7 per share, beginning after markets close on 15 March and ending on 12 April.
The Oslo Bors has mandated the offer after it approved an appeal by certain members of the Tidemand family and other minority shareholders.
The consortium argued a voluntary offer should have been launched last year when Kontrari acquired a 30.2% stake in Belships at NOK 7 per share from Sverre Tidemand’s vehicle Sonata.
