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
Seanergy announces $179m restructuring
(Posted on 14/01/21)Seanergy Maritime Holdings Corp. has announced that it has reached final agreements with certain of... Read more
IOMSR seafarer welfare app goes live
(Posted on 14/01/21)The Isle of Man Ship Registry has formally launched the first ever seafarer welfare app designed by... Read more
DNV GL to change name to DNV
(Posted on 13/01/21)DNV GL, the assurance and risk management company, will change its name to DNV on 1 March 2021. The... Read more
Yxney Maritime and Inmarsat agreement
(Posted on 10/01/21)Norwegian-based scale-up Yxney Maritime and Inmarsat, the world leader in global, mobile satellite communications... Read more
ClassNK advises early BWMS installation
(Posted on 10/01/21)Leading Classification Society ClassNK has been analyzing the retrofitting status of ballast water management... Read more
Cybersecurity to remain a threat in 2021
(Posted on 05/01/21)The maritime industry will remain a target of cyber-criminals in 2021 and the world’s shipping... Read more
IOMSR appoints China representative
(Posted on 05/01/21)The Isle of Man Ship Registry (IOMSR) has appointed its first permanent representative in China.Well... Read more
First shipment at Khalifa Port’s South Quay
(Posted on 28/12/20)The first shipment, carrying bauxite, destined for Emirates Global Aluminium (EGA)’s Al Taweelah... Read more
Jamaica and Kenya sign STCW Certificates MOU
(Posted on 22/12/20)The Maritime Authority of Jamaica has signed a Memorandum of Understanding with the Republic of Kenya... Read more
Free MHSS services over festive period
(Posted on 22/12/20)One of the shipping industry’s leading specialists in seafarer mental health support is offering... Read more
