Product carrier specialist Torm is continuing on an expansion path with new bank financing totalling $556m.

Two loan and leasing facilities worth $433m have been secured, refinancing existing borrowing and stretching debt maturity out until 2028, the Copenhagen-listed company said.

There are options to extend most of the expiration to 2029.

On top of this, Torm said it had obtained a commitment for $123m to finance the acquisition of further secondhand vessels on the same terms.

The company announced on Thursday that it was paying $97m to buy three 2013-built eco MR tankers from an unnamed owner. The deal will be financed through bank debt and shares.

In January, Torm swooped for seven LR1s from Jo Tankers and Glencore for $233m. It is arranging Chinese leaseback financing for these vessels.

The shipowner said the debt revealed on Thursday will be structured as syndicated facilities with between six and nine banks involved for up to $322m to refinance 21 ships built between 2009 and 2020.

Then there will be a further $111m from Hamburg Commercial Bank to refinance 26 ships built between 2003 and 2008.

New lenders welcomed

“I am very pleased with the process we have had with our group of relationship banks and the new banks in our syndicate in order to obtain commitment for a refinancing,” said Torm chief financial officer Kim Balle.

“Together with this strong group of banks, we have secured a refinancing on very attractive terms, and I feel confident that we have set the group of banks for the years to come that can assist us in growing Torm’s business.”

Danske Bank, ING and Nordea are the coordinators and mandated lead arrangers.

Closing of the agreements is subject to documentation and is expected in the next quarter.