Ardmore Gets $172M Credit Facility to Help with ECO Vessels

by Ship & Bunker News Team
Wednesday February 5, 2014

Ardmore Shipping Corp. [NYSE:ASC] (Ardmore) says it has been granted a $172 million credit facility that it will use to finance as much as 65 percent of the cost of eight vessels it has on order.

The fund, from ABN AMRO Bank N.V., Nordea Bank Finland Plc, and Skandinaviska Enskilda Banken AB ("SEB"), will be an amortizing senior term loan that will be available for borrowing until April 2016 and have a final maturity date in January 2021.

"We appreciate the support of these leading banks and are pleased to have secured this financing commitment to fund the expansion of our modern fleet of product and chemical tankers," said CEO Anthony Gurnee.

"With this commitment, we will have successfully financed the majority of the vessels on order in our current fleet well ahead of their deliveries scheduled for late 2014 and 2015.

"Additionally, we are in advanced discussions with a number of leading shipping banks on credit facilities related to our remaining two vessels on order and the Ardmore Seamariner and expect to finalize those agreements in the near term."

ABN AMRO also worked with Ardmore on its initial public offering in July 2013, according to a company statement at the time, while the new deal represents its first partnership with the other two lenders.

The parties may choose to increase the facility to finance additional ships.

Ardmore currently has 10 ships in operation and 11 on order, according to its website.

Ship & Bunker News Team
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