Safe Bulkers refinances fleet of 8 vessels

Monaco-based bulker owner Safe Bulkers has entered into a credit facility of $70 million with a five-year tenor.

As informed, the facility comprises a term loan tranche of $30 million and a reducing revolving credit facility tranche providing for a draw-down capacity of up to $40 million, with respect to seven vessels.

The agreement contains financial covenants in line with the existing loan and credit facilities of the company.

Specifically, the proceeds from the credit facility will refinance loan facilities of $64.3 million, in respect of eight vessels maturing in 2023, seven of which will secure the new credit facility and one of which will remain debt free.

The company added it will not utilize the full capacity of the revolving credit facility tranche at this time.

“We continue our strategy of gradually deleveraging our company and increasing the revolving credit facility component of our debt, which provides a greater flexibility and lower overall interest costs, targeting a lower leverage as we continue to renew our fleet with modern, energy efficient newbuild tonnage or second-hand tonnage from … Japanese yards that will replace older or Chinese-built vessels,” Loukas Barmparis, President of the company, commented.