NAT in new $430 mln credit facility
Nordic American Tankers Limited (NAT) [NYSE:NAT] says it has agreed with Scandinavian banks DNB, Nordea, and Skandinaviska Enskilda Banken a new non amortising credit facility totaling $430 million that will extend until the Autumn of 2017.
The company previously said in its September 25, 2012 investor telephone conference it had been assessing various alternatives and amounts for the total financial requirements.
Chairman and CEO of NAT, Herbjørn Hansson said "it gives NAT a continued solid financial footing and flexibility which will enable the company to grow, based upon both possible vessel acquisitions and newbuildings."
NAT has $250 million drawn from the current credit facility and has about $80 million in cash.
In a letter shareholders in August, Hansson said the company was "well positioned" to take advantage of the current historically low vessel prices, and while it was "very conscious not to make investments prematurely," NAT was actively considering opportunities to invest while ship prices were down.
"I believe that at some point the tide will turn," he said.
In September the firm said it would acquire the remaining interest in the Orion Tanker Pool (Orion) from Frontline Ltd. (Frontline), which the two companies started in the Autumn of 2011.
Final documentation for the credit facility was expected "to be completed shortly."