GoodBulk in $200 million refinancing swoop
Owner and operator of dry bulk vessels GoodBulk is joining its industry peers in securing refinancing and reducing cash break-even levels.
The company has received credit committee approval from its banks for a loan of $200 million to refinance the full amounts outstanding under five of its six existing facilities for approximately the same total amount.
The new $200 million loan is subject to the execution of customary definitive documentation and is expected to be finalized it within the first half of July 2020.
The loan will have a tenor of five years, bear interest at LIBOR plus 2.35%, which is about 0.15% below the present spread and include a non – amortizing period up until January 2021.
“This arrangement will allow GoodBulk to further reduce its already competitive all-in cash break – even for the second half of 2020 to $6,922 per day from a current $10,507 per day, for 2021 to $9,947 per day from a current $10,305 per day and for 2022 to $9,810 per day from a current $9,878 per day,” the company said.
The refinancing will definitely provide some ease for the company as its plans for capital investments for this and next year.
Specifically, the company plans to install ballast water treatment systems on seven Capesize vessels in 2020 and on two Capesize vessels in 2021 during their scheduled drydocks.
“BWTS installations will be evaluated on a case by case basis depending upon the age of each ship and the market conditions at the time of the required installation,” the company said earlier.
Based on initial estimates, GoodBulk expects to spend $14.7 million in 2020 and $3.7 million in 2021 for the drydockings and BWTS installations.
The loan is being announced on the back of the company’s $5.1 million loss in Q1 amid a weak Capesize market.
GoodBulk controls fleet of 24 dry bulk vessels, including 23 Capesize vessels and one Panamax vessel.