US-listed Lindblad Expeditions Holdings, which recently celebrated the keel laying of its first polar newbuilding, has refinanced its senior secured term loan and revolving credit facility.
The company, founded by Lars-Eric Lindblad as Lindblad Travel 60 years ago, has completed a new $200 million, seven-year, senior secured term loan.
It will carry interest at LIBOR plus 3.5%, with adjustment to LIBOR plus 3.25% depending on the company’s credit rating.
Lindblad Expeditions’ new $45m, five-year revolving credit facility will bear interest at LIBOR plus 3%.
The company, which towards the end of last year ordered from Ulstein Group a 12,300-gt newbuilding, says the new term loan and revolving credit facility represent a one percentage point rate reduction compared to the previous $175m term loan and $45m revolving credit.
Covenant modifications have created additional “strategic and operational flexibility,” says the cruiseship operator.
Proceeds from the new term loan have been used to pay down the existing term loan, while remaining additional proceeds will be used for general corporate purposes.
Credit Suisse, JP Morgan, Chase Bank and Citibank acted as joint book-runners, joint lead arrangers and syndication agents.
In a new presentation to investors, Lindblad Expeditions confirms a $135m price tag, including hedging costs, for its new, 126-passenger Ulstein Group newbuilding.
It says 20% was payable at signing and 80% on delivery, scheduled for the first quarter of 2020 but with “potential acceleration” to November 2019.The contract includes options for two additional vessels.
Last week, the company celebrated the keel laying at the CRIST shipyard in Gdynia, Poland with president and chief executive Sven Lindblad announcing the ship’s name, National Geographic Endurance.
He says it was in honour of “Ernest Shackleton, Lindblad Expeditions’ most revered explorer.”
Described as the “world’s most sophisticated expedition ship,” the technically-advanced newbuilding will, it is claimed, “create opportunities for guests beyond the reach of any contemporary ship.”
Sven Lindblad said the Polar Class 5 vessel would allow cruises “deeper into the ice pack or further north to the unexplored reaches of the Arctic.”
Lindblad Expeditions is the exclusive provider of National Geographic expedition oceangoing voyages.
