Euronav Shelves IPO, Takes Facility

Euronav Shelves IPO, Takes Facility

Belgium-based tanker operator Euronav NV has decided to postpone its initial public offering of ordinary shares in the United States, stating unfavourable current capital market conditions as the reason for pulling the plug.

The company said that it will continue to evaluate the most appropriate timing for the offerings as market conditions develop.

However, Euronav was active on other fronts, signing a new USD 340 million senior secured credit facility with the ING Bank NV.

The tanker operator says that the credit facility comprises of a USD 192 million term loan facility and up to USD 148 million non-amortising revolving credit facility.

The facility will be used for refinancing 4 Suezmax vessels: the Cap Felix (2008 – 158,765 dwt), the Cap Theodora (2008 – 158,819 dwt), the  Felicity (2009 – 157,667 dwt) and the Fraternity (2009 – 157,714 dwt) which were financed under the USD 300 million loan agreement dated April 3, 2009.

The company also plans to use the money to finance the purchase of four VLCCs announced on July 8, 2014 scheduled for delivery before the end of the second quarter of 2015.

The above mentioned 4 Suezmax and 4 VLCC vessels are used as a security for the facility.

Press Release; October 16, 2014

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