Sinoceanic Shipping signs $100 million term loan facility agreement financing 13.100-TEUs vessel
SinOceanic Shipping ASA's 100% subsidiary SinOceanic III AS (SinOceanic) owning the TEU 13.100 container vessel "MSC Regulus", partly financed the vessel by a USD 100 million senior secured loan with a tenor of one year with an option for SinOceanic to extend for one year. The loan carries an interest rate of 12% the first year and 11% the second optional year. Any cash surplus after the interest on the loan has been paid shall be used to repay the loan (cash sweep).
SinOceanic has exercised its option to extend the loan period by 12 months and simultaneously agreed a reduction in the interest rate from 11% to 9.75% for the second year and a reduction in the cash sweep from 100% to 70% of the cash surplus.