Navig8 Product Tankers Inc., an international shipping company focused on the transportation of petroleum products, yesterday announced that it has entered into a $130.3 million senior secured credit facility agreement with Citibank N.A., London Branch and Caixabank, S.A. (the “Credit Facility”) to provide post-delivery financing for four of the Company’s 74,000 DWT LR1 product tankers constructed or under construction at STX Offshore & Shipbuilding Co. Ltd, including the Navig8 Experience, which was delivered to the Company in March 2016.
The credit facility has two separate tranches - a $26.1 million commercial tranche and a $104.2 tranche insured by Korean Trade Insurance Corporation. Each drawdown from the Credit Facility shall be comprised of 20% from the Commercial Tranche and 80% from the K-Sure Tranche. The Credit Facility provides financing of approximately 65% of the contract price of these four vessels.
“With a blended margin over LIBOR below 2%, we are pleased to have secured attractively priced financing for these vessels,” said Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers. “Thus far, we have raised over $1.3 billion through a combination of equity, senior debt and sale and leaseback financing. We will continue to seek diverse and inexpensive sources of capital as we continue to accept deliveries from our newbuilding program.”
Source: Navig8 Product Tankers