Ardmore Refinances Debt to Support Continued Growth

by Ship & Bunker News Team
Monday January 18, 2016

Ardmore Shipping Corporation (Ardmore) [NYSE: ASC] Thursday announced that it has refinanced its outstanding debt, strengthening its financial flexibility and increasing its borrowing capacity to support continued growth.

The company says it has received $364 million in total senior secured term loan commitments across two facilities, extended its debt maturities to 2022, and smoothed out its repayment profile.

"This opportunistic refinancing on attractive terms reflects the Company's strong banking relationships and improving financial profile, as well as the successful completion of a newbuilding program that has more than doubled the size of our fleet since our IPO with the addition of new, state-of-the-art, Eco-design vessels," said Anthony Gurnee, CEO at Ardmore.

"Furthermore, Ardmore is well positioned to capitalise on future growth opportunities with the additional lending capacity built into these facilities."

The refinancing is said to be expected to reduce Ardmore's interest expense by about $2 million in 2016, as well as increase the company's surplus cash flow by an estimated $6 million the same year.

Ardmore says its first facility is $213 million of funded debt from ABN AMRO Bank N.V. (ABN AMRO) and DVB Bank SE (DVB), which includes an incremental commitment of $20 million in order to fund future acquisitions.

The second facility is said to consist of $151 million in funded debt from Nordea Bank AB (Nordea) and Skandinaviska Enskilda Banken AB (SEB).

In November, Ardmore announced the opening of a new Singapore office, intended to enable the company to expand its operations in the "important growing markets" of Asia and the Middle East.