Greece’s Okeanis Eco Tankers has clinched a new $113m loan to refinance three tankers more cheaply.
The Oslo-listed company said the senior secured credit facility is being provided by Dutch bank ABN Amro.
The cash will “refinance existing indebtedness at significantly improved terms”, the owner added.
The transaction is in line with the company’s strategy of capital structure optimisation, Okeanis said.
The proceeds will be used to refinance existing debt related to the 319,000-dwt VLCC Nissos Keros (built 2019) and two suezmaxes, the 159,000-dwt Kimolos and Folegandros (both built 2019).
Okeanis added that the loan will also prepay the company’s scrubber financing at equal leverage terms.
The facility will be repaid quarterly and matures over five years.
The coupon is 190 basis points (bps) above the secured overnight financing rate (Sofr) and will be secured by the three tankers.
Fearnley Securities said current debt was priced between 200 bps and 260 bps above Sofr.
The owner of 14 modern VLCCs and suezmaxes has boosted its dividend on the back of its best quarterly profit since listing in Oslo five years ago.
Net income at the Alafouzos family company soared to $51.6m in the first quarter from an already stellar $48.4m in the previous quarter and up 456% year on year.
The decision to leave most of its biggest tankers in the spot market paid off handsomely, as time charter equivalent earnings of its eight VLCCs tripled from the same period of 2022 to $70,800 per day.
Its eight VLCCs were in the spot market 87% of the time in the first quarter and its remaining six suezmaxes 50% of the time, according to a company presentation.
The capital return to shareholders increased to $1.60 per share from $1.25 in the previous quarter.
