Greece-based shipping firm Star Bulk Carriers has made way for vessel acquisitions and dividend payments as it cleared all debt from its 2016 finance restructuring.
Namely, the company repaid all outstanding deferred debt amounts originating from the September 2016 restructuring of its finance agreements to its lenders.
This development means that Star Bulk currently has no restrictions on vessel acquisitions or new debt and is free to make dividend payments to its shareholders from January 1, 2019 onwards.
Additionally, the company said it refinanced existing loans of around USD 617 million with new debt financing totaling over USD 625 million.
The new debt will finance 59 vessels of all types, ranging from Newcastlemax down to Supramax, with an average age of 10.2 years.
With this transaction, Star Bulk has been able to expand its banking group to include new European and Asian financial institutions, and reduce its cost of debt as the interest margin on the New Debt is 70 bps lower than the weighted average interest margin on refinanced debt, the company explained.