Ocean Yield Secures USD 330 Mn of New Loans

Norwegian shipowner Ocean Yield signed several new loan agreements with a number of banks, totaling around 330 million, during the second quarter of 2018.

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The company said that the new loans were signed for the long-term financing of recent investments, including two dry-bulk vessels, three Suezmaxes and two VLCC crude tankers.

As of quarter end some USD 265 million of this is undrawn, Ocean Yield said, adding that the loan facilities have maturities between five and seven years and are priced at attractive terms.

“We have completed a number of new loan facilities for the long-term financing of recently announced investments and successfully issued a new unsecured bond at attractive terms,” Lars Solbakken, CEO of Ocean Yield, said.

In May, Ocean Yield issued a new 5-year unsecured bond issue of NOK 750 million. The net proceeds from the bond issue would be used to refinance existing debt, finance future growth of the group and general corporate purposes.

The company unveiled the loan agreements as part of its financial report for the second quarter ended June 30, 2018.

The company’s operating revenues during the period were USD 69.8 million compared with USD 66.3 million in reported in the first quarter of the year. The increase mainly relates to the vessel Connector, which has been fully employed on the time-charter contract for cable installation on Ørsted’s Hornsea Project One during the second quarter.

Ocean Yield’s net profit after tax was USD 35.1 million in the second quarter of 2018, up from USD 33.3 million reported in the previous quarter.

Ocean Yield continued to expand and diversify its fleet of vessels on long-term charter, evidenced by the commitment to invest in another 15 vessels during the first six months of 2018. In the coming 12 months, the company will take delivery of another eleven vessels on long term charter.