Gram Car Carriers has hashed out another deal to lower its financing costs.
The Oslo-listed car carrier tonnage provider said on Thursday that it had spent $30.5m repaying the lease debt for the 6,700-ceu Viking Adventure (built 2015).
The company said the funding came out of available liquidity.
“We continuously seek to optimise our capital structure and cost base to maximise profit and shareholder returns,” chief executive Georg Whist said.
“Lower cost debt, combined with a near-record revenue backlog built in a historically strong car shipping market, support long-term cash flow visibility and continued attractive dividend distributions.”
Gram Car Carriers said it was in the process of establishing new “competitively priced” debt for the ship versus the paid-off debt priced at the secured overnight financing rate (Sofar) plus 4.26%.
In December, the company announced it refinanced the 5,000-ceu Mediterranean Sea (built 2010) and 6,700-ceu Viking Bravery (built 2015).
The Viking Bravery deal came with an “attractively priced” $35m term loan with Germany’s DekaBank Deutsche Girozentrale at a rate of Sofar plus 1.65%.
For the Mediterranean Sea, the company drew down an accordion facility and cut a new financing deal consisting of a $15m term loan and a $15m revolver.
The new deal was Sofar plus 2.4% and potentially lower versus the previous rate of Sofar plus 3.25%.
In midday trading, Gram Car Carrier shares were down NOK 4 ($0.38) to NOK 225.50.
Company executives have argued that the security situation in Yemen, with Houthi militants launching attacks on commercial shipping in the Red Sea and Gulf of Aden causing a flight of ships from the region, would be a boon to car carriers.
The market is already undersupplied and the diversions are expected to push down supply, boosting rates.
