Dorian LPG said it received permission to use restricted cash and easier covenants from its lenders as VLGC rates continue to remain weak.
The New York-listed LPG carrier owner is also contemplating a share offering in order to raise new capital.
The lenders syndicate - ABN Amro, ING, Commonwealth Bank of Australia, and Kexim - originally provided some $758m in debt financing in 2015.
The lenders agreed to allow Dorian to use $24.8m of restricted cash on its balance sheet to cover the next two debt principal payments.
In return, Dorian will have to refill the restricted cash account by $22m over the next year, unless it can raise $50m in new equity. The lenders also agreed to reduce the company's minimum liquidity requirement to $40m.
The New York-listed company will also be able to pay dividends and repurchase shares in the event it completes the $50m offering.
The lenders also agreed to reduce the ratio of operating earnings to net interest expense from 2 to 1.25 over the next twelve months, and to 1.5 through 31 March 2019. The ratio will revert back to 2.5 after that period.
The lenders also agreed to reduced the value-to-loan ratio on the ships pledged to the debt from 135% to 125% for the next twelve months.
All in, the company says the debt amendments will reduce its vessel cash breakeven costs to $6,176 per day.
