Okeanis Eco Tankers has taken down its debt costs by striking a refinancing deal for one VLCC and rejigging a loan secured by another.
The transactions come just a year after the New York and Oslo-listed tanker owner refinanced the 319,000-dwt Nissos Kythnos and 318,700-dwt Nissos Donoussa (both built 2019).
Chief financial officer Iraklis Sbarounis said the two deals chop its debt pricing by 100 basis points on the ships, for an interest rate reduction of one percentage point, and they continue a 10-month drive to tackle the company’s finance costs.
“We are currently observing a very competitive financing market landscape for us, a testament to the positioning of the company and our strong relationships with our financiers,” he said.
“We are delighted to commence partnerships with new ones and at the same time are proud and thankful to be able to benefit from ones we and our major shareholder have established and cultivated for many years.”
The Greek company has now signed up for a new $60m senior secured credit facility that refinances the Nissos Kythnos again, this time with lender Danish Ship Finance.
Some of the cash will also go towards general corporate purposes.
In a deal expected to close this month, Okeanis agreed to pay 140 basis points above the Secured Overnight Financing Rate, a US lending benchmark known as the SOFR, until December 2026.
Then, the two sides will agree to a new rate for the duration of the loan, which matures in six years, or Okeanis will have to repay the loan if a new rate is not agreed.
Okeanis will pay quarterly instalments of just over $1.04m, with a balloon payment of $35m at the end.
It will also receive a sustainability-linked margin benefit beginning next year, which will increase or decrease its rate by five basis points depending on whether it reaches targets.
The company also said it reached a deal with the lender on its loan for the Nissos Donoussa to cut the margin to 165 basis points over SOFR.
That deal closes this month as well.
Sbarounis said next up is an effort to secure debt capital at favourable terms to exercise the purchase option on the lease financing for the 157,500-dwt Poliegos (built 2017).
