Hanjin Shipping and three other South Korean shipping lines agreed to borrow $630 million from 13 lenders to refinance liquefied natural gas vessels, according to Bloomberg News.
Hanjin, Hyundai Merchant Marine, Korea Line and SK Shipping will each get 10-year loans, two people with direct knowledge of the matter told Bloomberg.
The two people, who asked not to be identified as the transaction isn’t completed, said the carriers plan to sign the contracts mid-December.
BNP Paribas, Bank of Tokyo-Mitsubishi, Societe Generale and Standard Chartered are among 12 banks providing about $505 million through a club loan, paying interest of about 280 basis points more than the six month London interbank offered rate, the two people said. Financial adviser Korea Development Bank will underwrite the balance, they said.
The global recession, overcapacity and a slump in trade is weighing on cargo rates, hurting container lines. Hanjin last month posted its third straight quarterly loss.
Korea Gas, the world’s largest importer of liquefied natural gas, agreed to provide a letter of undertaking to guarantee the carriers’ ability to repay the loans, the people said.
Spokesmen at Hanjin, Korea Line and SK Shipping referred queries to the officials involved, but none of them could be reached for immediate comment.
Hanjin Shipping, Hyundai Merchant Marine and SK Shipping paid about 360 basis points more than six-month Libor when they borrowed a combined $482 million in loans for vessel refinancing in July.
Hanjin, Hyundai Merchant Marine, Korea Line and SK Shipping will each get 10-year loans, two people with direct knowledge of the matter told Bloomberg.
The two people, who asked not to be identified as the transaction isn’t completed, said the carriers plan to sign the contracts mid-December.
BNP Paribas, Bank of Tokyo-Mitsubishi, Societe Generale and Standard Chartered are among 12 banks providing about $505 million through a club loan, paying interest of about 280 basis points more than the six month London interbank offered rate, the two people said. Financial adviser Korea Development Bank will underwrite the balance, they said.
The global recession, overcapacity and a slump in trade is weighing on cargo rates, hurting container lines. Hanjin last month posted its third straight quarterly loss.
Korea Gas, the world’s largest importer of liquefied natural gas, agreed to provide a letter of undertaking to guarantee the carriers’ ability to repay the loans, the people said.
Spokesmen at Hanjin, Korea Line and SK Shipping referred queries to the officials involved, but none of them could be reached for immediate comment.
Hanjin Shipping, Hyundai Merchant Marine and SK Shipping paid about 360 basis points more than six-month Libor when they borrowed a combined $482 million in loans for vessel refinancing in July.