Seanergy Announces New $21.3 Refinance Facility
GLYFADA, Greece, March 02, 2022 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seenergy”) (NASDAQ: SHIP) today announced that it has entered into a definitive agreement with a reputable Japanese lender to refinance the loan facilities secured by the 2012-built Capesize M/V partnership (the “Vessel”) through a sale and leaseback structure.
Under the terms of the new facility, the vessel will be sold and bareboat chartered for a period of eight years from the closing date, which is expected to be soon, in March 2022.
The financing amount is $21.3 million and the applicable interest rate is SOFR + 2.90% per annum. The new interest rate is approximately 210 basis points lower than the blended rate of the existing senior and junior loan facilities currently secured by the vessel. Additionally, $4.3 million of additional cash will be freed up for the Company through the refinancing.
The facility will be amortized in quarterly installments averaging approximately $590,000. After the second anniversary of the bareboat charter, the Company has continued options to repurchase the vessel. At the end of the 8-year bareboat period, Seanergy has an option to buy back the vessel for $2.39 million, which the company plans to exercise.
Following the completion of the refinancing, the Company will no longer have any outstanding junior debt.
Fearnley Securities AS acted as the Company’s exclusive financial advisor for this financing providing valuable support in the origination, structuring and execution of the transaction.
Stamatis Tsantanis, Chairman and CEO of the company, said:
“I am pleased to announce another successful refinancing for our company, in line with our commitment to optimize the capital structure and further reduce our financing costs. The transaction marks an important step for our Company, since, after its completion, there will be no former junior debt outstanding.
“The transaction presents another strategic element for Seanergy, as we have initiated a valuable relationship with a leading lender in the Japanese market. Over the past 12 months, we have strengthened our presence in the Asian ship finance market with similar transactions in China, Taiwan and Japan.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only publicly traded Capesize pure-play shipowner in the United States. Seanergy provides dry bulk shipping services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and a total carrying capacity of approximately 3,011,083 dwt.
The company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common stock trades on the Nasdaq Capital Market under the symbol “SHIP” and its Class B Warrants under “SHIPZ”.
Please visit our company website at: www.seanergymaritime.com.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events . Words such as “may”, “should”, “expect”, “intend”, “plan”, “believe”, “anticipate”, “hope”, “estimate” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based on a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its debt; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and divestitures, business strategy, possible areas of expansion or contraction and anticipated capital or operating expenditures; risks associated with operations outside the United States; risks associated with the duration and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk commodities and their transportation; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent Annual Report on Form 20-F. Company filings may be obtained free of charge at the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligation or undertaking to release any update or revision to any forward-looking statement contained herein to reflect any change in the Company’s expectations with respect thereto or any change of events, conditions or circumstances on which any statement is based.
For more information, please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
Email: [email protected]
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel: (212) 661-7566
Email: [email protected]