Safe Bulkers sell and leaseback eight ships

(Posted on 21/01/20)

Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced that the

Company has entered into sale and leaseback agreements with respect to eight vessels. The

proceeds from the sale and leaseback agreements are being used to refinance loan facilities of

$105.2 million with terms expiring between 2023 and 2025 and for general corporate

The aggregate gross proceeds to the Company in connection with the sale and leaseback

arrangements are $158.3 million. Under the arrangements, two vessels were leased back,

under bareboat charter agreements, for a period of six years and six vessels were leased back

under bareboat charter agreements, for a period of eight years. Four of such arrangements

contemplate a purchase obligation at the end of the bareboat charter period and purchase

options commencing three years following commencement of the bareboat charter period,

and the remaining four arrangements contemplate a purchase option five years and nine

months following commencement of the bareboat charter period, all at predetermined

purchase prices. The Company has assessed that these transactions will be recorded as

financing transactions.

The sale and leaseback agreements provide additional liquidity of $53.1 million. The

agreements contain financial covenants in line with the existing loan and credit facilities of

the Company. The repayment schedule of the Company on a pro-forma basis taking into

account the refinancing transactions, in relation to the repayment schedule as of September 30.

In addition, the Company has entered into a three-year unsecured revolving credit facility

providing for a draw down capacity of $15 million.

As of January 15, 2020, the Company had liquidity of $143.6 million consisting of $113.8

million in cash and bank time deposits, $14.8 million in restricted cash and $15.0 million

available under the unsecured revolving credit facility.

Dr. Loukas Barmparis, President of the Company, said: “These recent financing

arrangements have strengthened our liquidity position, which now exceeds $140 million, and

provide us with financial flexibility to take advantage of opportunities that may arise.”

Latest News

New leadership team elected at INTERCARGO

INTERCARGO, the International Association of Dry Cargo Shipowners, has announced significant changes... Read more

Core Power ramps up Japan operations as US$500m funding round nears completion

CORE POWER is building the world’s first Maritime Civil Nuclear Programme in the OECD with a potential... Read more

Concern over RightShip's age limit reduction for Bulker vetting inspections

The International Association of Dry Cargo Shipowners (INTERCARGO) members have voiced deep concerns... Read more

Four Damen Combi Freighter 3850s ordered by Reederei Bernd Sibum

German family-owned shipping company, Reederei Bernd Sibum, has placed an order with Damen Shipyards... Read more

ClassNK’s world first notation for ships using green steel for NYK Bulker

ClassNK has granted the class notation ‘a-EA (GRS)’ to ‘BRIGHT QUEEN’, the bulk... Read more

Veson: Decarbonisation regulations reducing average speed of bulker fleet

Estimated carbon emissions from bulk carrier vessels have fallen by 5 million tonnes, or 2.5%, since... Read more

Danica and IMEQ collaborate for safety and wellbeing

Danica Crewing Specialists has partnered with the Innovative Maritime Emotional Intelligence Centre (... Read more

Unprecedented insight into connectivity and wellness at sea

Unique data is being used to create a series of ‘snapshots’ into the state of the maritime... Read more

Fleet Management Limited appoints Chief Executive Officer

Fleet Management Limited, a part of The Caravel Group Limited, has announced the appointment of Captain... Read more

Caribbean states join together to call for fuel levy

Caribbean states have joined forces to ensure the views of Small Island Developing States (SIDS) are... Read more