Box Ships Secures Loan Extension

Greece-based container shipping company Box Ships Inc. has agreed with ABN AMRO Bank N.V. to extend for two years the secured loan facility dated June 27, 2012, which was originally scheduled to mature in July 2015.

Following this extension, the balloon amount of USD 10 million is repayable in 8 equal quarterly installments of USD 250,000 plus a balloon payment of USD 8 million payable together with the final installment in July 2017. Pursuant to this agreement, certain financial covenants and undertakings were amended or waived for the period commencing on June 30, 2015 and ending on June 29, 2016, the company said.

Also, the company agreed with the lenders of the syndicated facility with ABN AMRO Bank, N.V. dated May 6, 2011, to amend or waive certain financial covenants, undertakings and the security cover ratio of this facility for the period commencing on June 30, 2015 and ending on June 29, 2016.

Finally, the company announced that it has entered into time charter contracts for the vessels Box China and Box Hong Kong with Mediterranean Shipping Company S.A. for a period of minimum twelve months to maximum sixteen months. Both charters are expected to commence the latest by mid-July 2015.

According to Michael Bodouroglou, Chairman, President, Chief Executive Officer and Interim Chief Financial Officer, the extension of the facility that is secured by the vessels Box China and Box Hong Kong is another illustration of “the ongoing support of our lenders and enabled us to charter the vessels at rates that further improve our cash flow generation.”