World News
Two Major Tanker Firms Achieve Loan Refinancing
Two of the world's largest oil tanker firms this week announced significant loan refinancing, which are seen as positive for financial performance.
Frontline Ltd. (Frontline) Thursday announced it has signed a new agreement for a senior secured term loan facility of $500.1 million.
Nordic American Tankers (NAT) meanwhile said it has agreed on a new facility for $500 million, representing an increase from its previous facility of $430 million.
Frontline said its new facility comes at a rate of LIBOR plus a margin of 190 basis points, with the company also reducing the interest rate on a $466.5 million term loan facility to 190 basis points.
It was said this reduction in interest rates will boost Frontline's 2016 cash and profit-and-loss by approximately $22 million and $7 million respectively, with average daily cash cost breakeven TCE rates on the current operating fleet reduced by approximately $1,400 per day.
"The terms achieved in the refinancing and related amendments improve our cash flow and lower our cash breakeven rates further," said Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS.
Frontline said that proceeds from the new loan facility will be used to refinance four existing bank facilities of approximately $378 million and repay $113 million owed to Ship Finance International Limited.
It was noted the facility will be secured by six Very Large Crude Carriers and six Suezmax tankers with an average age of 4.6 years, having an amortization profile of 13.4 years.
NAT's loan facility is provided by DNB Bank, Nordea, and Skandinaviska Enskilda Banken, maturing at end 2020.
Frontline's facility is provided by DNB Bank ASA, Nordea Bank Norge ASA, ABN AMRO Bank NV, ING Bank NV, Skandinaviska Enskilda Banken AB, Danske Bank A/S, and Credit Suisse AG, and will mature in December 2020.
In September, Ship & Bunker reported that Frontline was looking for consolidation and acquisition opportunities following an improvement in the company's income.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
Popular Now More
-
Jun 05Marex's Bastien Declercq discusses how biofuel markets are likely to react to the IMO's new GHG regulation. -
Jun 04The MPA has not directly given a reason for declining to renew the licence. -
Jun 02The new joint venture will initially focus on biofuel supply in northern Europe, BlackCoral Energy Managing Partner Jesper Christensen tells Ship & Bunker.