New York-headquartered crude oil shipping company Gener8 Maritime has entered into a USD 60.2 million term loan facility with Citibank to fund a portion of the remaining installment payments due under the shipbuilding contract for one very large crude carrier (VLCC) newbuilding.
The VLCC in question is the 333-meter Gener8 Strength, currently under construction at Shanghai Waigaoqiao Shipbuilding in China. The Gener8 Strength was planned for delivery on October 15, according to Gener8 Maritime.
The loans under the facility will mature on October 21, 2016. If certain extension conditions are satisfied on or prior to the one-year anniversary of the effective date of the facility, the maturity date will be extended to October 21, 2020.
Under the facility, the company is required to use commercially reasonable efforts to obtain a credit facility with export credit insurance support from China Export and Credit Insurance Corporation for the post-delivery financing of up to 6 newbuildings as promptly as practicable, and apply proceeds from any such credit facility to the repayment in full of the Citibank facility.
Gener8 Maritime was formed back in February when General Maritime Corporation and Navig8 Crude Tankers entered into a definitive agreement to merge.
The company now has a fully-delivered fleet of 47 vessels, including one time-chartered-in VLCC.
Gener8’s owned fleet is comprised of 20 VLCC newbuildings and 26 vessels on the water.