DHT Holdings says that a previously disclosed $50m revolver with ABN Amro will be backed with mortgages on two VLCCs, according to a securities filing.
DHT, which received an unsolicited takeover bid from larger peer Frontline, said in its third-quarter earnings call last November it entered the five year revolving credit facility with ABN Amro "for general corporate purposes including security repurchases and acquisition of ships." The financing is at Libor plus 250 points.
Thursday's filing says the revolver will be backed by mortgages on the 318,000-dwt DHT Amazon (built 2011) and the 317,700-dwt DHT Europe (built 2007).
The DHT Amazon was last reported to be extended on a time charter to an oil major at $44,100 per day.
ABN Amro is no stranger to DHT as it was the lead lender, along with DVB and Nordea, on three newbuildings back in 2014. DHT still owes $133m on that facility.
