Diamond S Shipping is pushing its debt back.
The Connecticut tanker owner announced Monday that it had secured a five-year, $525m credit facility that it would use to pay down the company's $501m in outstanding loans.
"We are pleased that we were able to close on this facility and achieve a number of important goals, particularly given the challenging international environment for ship lending," said Kevin Kilcullen, Chief Financial Officer.
"We have also accomplished a number of other objectives including increasing our available liquidity, lowering our average interest rate margin and improving our financial flexibility to support the growth of Diamond S."
Chief executive Craig Stevenson said the company worked with Nordea Bank's New York Branch, Credit Agricole Corporate and Investment Bank, Skandinaviska Enskilda Banken, ABN AMRO, National Australia Bank and BNP Paribas, among others, to get the deal done.
The new credit facility has an interest rate of Libor plus 2.5% with payments beginning 31 March, 2020. The company said the covenant structure is "in line with current facilities".
In early trading, New York-listed Diamond S was up $0.40, or 2.9%, to $16.91.
