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
ICS launches engine room safety guidance
(Posted on 06/07/20)The design, complexity and arrangement of engine rooms across the global shipping fleet vary far more... Read more
North completes Sunderland Marine integration
(Posted on 06/07/20)North P&I Club has completed integration of the Sunderland Marine Insurance Company Limited business... Read more
New NI President to focus on three challenges
(Posted on 06/07/20)The newly elected President of The Nautical Institute, Jillian Carson-Jackson has vowed to help the... Read more
ClassNK amendments to class rules
(Posted on 06/07/20)Leading Classification Society ClassNK has released amendments to its Rules and Guidance for the Survey... Read more
Hydrex repairs bulker scrubber overboard pipe
(Posted on 06/07/20)Last month Hydrex diver/technicians carried out scrubber overboard pipe repairs in Belgium and the Netherlands... Read more
Four new ultramax bulkers for Norden
(Posted on 01/07/20)Following the sale of 10 ships since 2018, Dampskibsselskabet Norden has entered into a newbuilding... Read more
Strategic maritime e-learning partnership formed
(Posted on 30/06/20)V.GROUP, the leading global provider of ship management and marine support services, and Ocean Technologies... Read more
Report investigates role of tech in crew welfare
(Posted on 30/06/20)Inmarsat, the world leader in global, mobile satellite communications, has published a new report focusing... Read more
Safety investment from MENAS
(Posted on 30/06/20)The Middle East Navigation Aids Service (MENAS) has recently invested $20,000 in upgrading its Aids... Read more
Crews pushed to limits on Day of Seafarer
(Posted on 25/06/20)Despite a universal campaign from all sectors of the shipping industry to classify seafarers as key... Read more
