Navig8 Product Tankers Secures Post-Delivery Funding for LR1 Duo
Petroleum products transporter Navig8 Product Tankers has entered into a USD 66 million senior secured credit facility agreement with the Singapore branch of ABN AMRO Bank to provide post-delivery financing for two of its 74,000 dwt LR1 product tankers under construction at SPP Shipbuilding in South Korea.
Navig8 Product Tankers took delivery of the first of four LR1 tankers constructed by SPP Shipbuilding on 15 July.
The Navig8 Pride is also the first of four vessels to be delivered under the sale and leaseback agreements entered into with CMB Financial Leasing Co.
The credit facility has two separate tranches – a USD 13.2 million commercial tranche, and a USD 52.8 million tranche insured by Korea Trade Insurance Corporation.
The loan provides financing of approximately 65% of the contract price of these four vessels.
So far the company has taken delivery of nine LR1 and eight LR2 product tanker newbuildings and anticipates that its entire newbuilding fleet will be delivered by the end of 2016.