Safe Bulkers Takes Loan to Finance Newbuildings
Safe Bulkers, Inc., an international provider of marine dry bulk transportation services, has entered into a USD 210 million, six-year credit facility agreement with Norway’s DNB Bank ASA, secured by ten vessels.
Athens-based Safe Bulkers will use the new credit facility to finance the acquisition of two previously contracted newbuild vessels, scheduled to be delivered in 2015, and to replace and prolong an existing credit facility with the same lender, presently secured by eight existing vessels.
The agreement stipulates that Safe Bulkers will be subject to the following financial covenants:
- The total consolidated liabilities of the company divided by its total consolidated assets must not exceed 85%;
- The ratio of the company’s EBITDA to its interest expense must be less than 2.0:1 on a trailing 12 month basis;
- The consolidated net worth of the company must not be less than USD 150.0 million.
The company intends to finance its newbuild program with cash on hand and bank financing. With this credit facility and the other committed credit facilities, the company says it has secured bank financing for twelve out of thirteen newbuild vessels on order.