Andreas Sohmen-Pao’s BW LPG has secured a major refinancing package covering its largest loan, which was set to mature next year.
The world’s largest VLGC owner has signed a $458m package with eight banks to refinance a previous $800m facility.
Competitive debt
BW LPG has moved early on the refinancing, stamping out any potential investor worry about its ability to secure new competitive bank debt after a long VLGC down-cycle.
Martin Ackermann, chief executive of BW LPG, said the deal involved existing banks and two new lenders to the Oslo-listed company.
“This refinancing demonstrates BW LPG's continued ability to tap upon highly competitive capital, which will lower our cost of debt and cash breakeven level,” he added.
Nordea Bank, Oversea-Chinese Banking Corporation and Skandinaviska Enskilda Banken were the lead arrangers.
ING Bank, Danish Ship Finance and Danske Bank were also on the ticket, alongside Credit Agricole and Iyo Bank, which are new lenders to the company.
This refinancing demonstrates BW LPG's continued ability to tap upon highly competitive capital which will lower our cost of debt and cash breakeven level
Martin Ackermann
The facility carries an 11-year amortisation period and is priced at Libor plus 1.8%.
Results presentation
The shipowner told investors at during its first quarter results presentation that it was close to refinancing the bank debt, with just the final documentation required. It had $322m outstanding on the load.
BW LPG had total debt of $1.33bn at the end of the first quarter, spanning banks, lease financing and export credit agency funds.
At that time it had $165m undrawn and $38.1m in cash. Its total assets ran to $2.3bn.
