Precious Shipping secures $400 million credit facility
Partner Chris Lowe and assistant Chien Herr Lee from the Singapore office of Watson, Farley & Williams LLP, along with and assistants Charlene Lim and Pumma Duangrutana from the Bangkok office, have advised Precious Shipping. (“Precious”) in relation to the raising of just under US$400 million in bank loans to fund its newbuilding programme. The Thai-listed handysize dry bulk specialist had arranged credit facilities of US $398.4 million with DnB Nor Bank in Singapore, Kasikornbank and a number of other international banks. The facility covers 80% of the financing for nine 32,000 dwt handysize bulkers costing US$30 million each and six 54,000 dwt supramax bulkers at a cost of US$38 million each to be built at ABG Shipyard in India and delivered between 2010 and 2012. The company has a total of 12 handysizes on order from ABG, with deliveries going through to 2013.
The loans mature 10 years after the delivery drawdown of the first vessel, with final maturity expected in March 2020.
Precious has already fixed charters of 60-62 months for its first four handysize newbuildings to be delivered, with the charterer holding similar options for the fifth and sixth vessels. The contracts are worth US$26-US$27million per ship.
DnB Nor in Singapore is bookrunner, underwriter, mandated lead arranger, facility agent and security agent for the facility, while Kasikornbank is joint lead arranger.
The loans mature 10 years after the delivery drawdown of the first vessel, with final maturity expected in March 2020.
Precious has already fixed charters of 60-62 months for its first four handysize newbuildings to be delivered, with the charterer holding similar options for the fifth and sixth vessels. The contracts are worth US$26-US$27million per ship.
DnB Nor in Singapore is bookrunner, underwriter, mandated lead arranger, facility agent and security agent for the facility, while Kasikornbank is joint lead arranger.