New York-based CIT Group closed its second refinancing deal in less than week with a loan to Greek bulker owner Globus Maritime.
The $34.25m deal sees CIT as sole lead arranger for loans backing Globus' fleet of four supramax and two panamax vessels, which are fixed on short-term or medium-term charters.
The loan from the revitalised US lender came after its announcement of a $22m refinancing for containerships in the fleet of Monaco-based Madison Marine Corp on Monday.
Globus said the lending will significantly reduce its borrowing costs.
“We are very pleased that we have managed to refinance our fleet by not only being able to extend the maturity of the loan but also by reducing the margin of our existing loan from 8.5% to 3.75% per annum, enabling us to save money in interest costs," Globus chief executive Athanasios Feidakis said.
“We appreciated CIT’s maritime expertise and agility in arranging this financing for our portfolio of dry bulk ships.”
The lending will save Globus $1.5m in interest in 2021 and $2.2m when accounting for the full year in 2022, Feidakis said.
"Upon the completion of this transaction our bank debt stands at around $34m, compared to total assets of the company of around $144m adjusted to reflect the market value of the six vessels. We believe our new financial position is healthy and will help us accomplish our long-term plans," Feidakis said.
Nasdaq-listed Globus has a market capitalisation of about $45m.
CIT has experienced a revival of its maritime lending practice under the leadership of former DVB banker Evan Cohen.
Cohen told TradeWinds in March that CIT has a "sweet spot" of roughly $35m for bilateral deals with a typical margin between 3.5% and 4.5%.
“Globus Maritime is known throughout the industry for its experience as a top-level shipping operator and the quality of its shipping assets,” Cohen said.
“We were pleased to support their ongoing operations and growth by arranging this financing.”
