Torm is heading into Christmas with an additional $130m at its fingertips after signing a team sheet for new $130m credit line.
It is taking on the extra debt in preparation of expansion opportunities that may come along in the new year following a fall in asset prices.
ABN AMRO, Danske Bank, DVB and ING are behind the facility that matures in March 2022, a statement said.
Christian Sogaard-Christensen, chief financial officer of Torm, notes that following a new loan with Danish Ship Finance in November, the owner has now secured $160m in debt financing during the past two months.
He explained Torm is trying to build liquidity in a market where it pays to have sufficient financial and strategic capability should the right opening come along.
“The market has been down, we have seen asset prices come down and we want to have the financial flexibility to act on that,” he told TradeWinds.
Torm’s latest loan is secured against nine of its medium range tankers. It adds to the $147m it had in cash and credit.
Danske Bank was an existing lender to Torm, while ABN AMRO, DVB and ING are all new clients.
Torm has been working towards a listing in New York in addition to its position on the Copenhagen Stock Exchange.
