Dorian LPG Secures USD 97 Mn Bridge Loan
Liquefied petroleum gas shipping company Dorian LPG has entered into a USD 97 million bridge loan agreement with New York-based lender DNB Capital LLC.
The Marshall Islands-incorporated company plans to use the proceeds of the loan to repay the remaining outstanding debt of USD 98.6 million under the secured bank debt facility with Royal Bank of Scotland for USD 94.7 million and to pay fees and expenses associated with the transaction.
As part of the refinancing, USD 6 million of cash previously restricted under the RBS Loan Facility was released as unrestricted cash for use in operations.
“We continue to actively strengthen our balance sheet and increase our financial flexibility. We will remain proactive in our financial and commercial activities to maximize Dorian’s ability to participate in the continuing favorable developments in the global LPG market with the consistent goal of creating shareholder value,” John Hadjipateras, Dorian’s Chairman and Chief Executive Officer, said.
Ted Young, the company’s Chief Financial Officer, added, “After finalizing this bridge loan and the amendment to our 2015 debt facility that was announced last week, we are well positioned to both manage through a market trough and take advantage of opportunities that the market may present.”
Repayment of the principal amount of the bridge loan is due on or before August 8, 2018.