Safe Bulkers, Inc., an international provider of marine drybulk transportation services, has entered into sale and leaseback agreements with respect to eight vessels, the company said in its release.
The proceeds from the sale and leaseback agreements are being used to refinanceloan facilitiesof $105.2 million with terms expiring between 2023 and 2025 and for general corporate purposes.The aggregate gross proceeds to Safe Bulkers 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 periodand 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,allat predetermined purchase prices.
Safe Bulkers has assessed that these transactions will be recorded as financing transactions. The sale and leaseback agreements provide additional liquidity of $53.1million. The agreements contain financial covenantsin line with the existing loan and credit facilities of Safe Bulkers.
Safe Bulkers is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. Safe Bulkers’s common stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.