The loan has a five-year term with an extended repayment profile and a reduced interest margin, resulting in savings of USD 2.8 million per annum of debt service. The facility includes a USD 10 million tranche that is available for future acquisitions.
Completion of this refinancing leaves Epic Gas with four unencumbered vessels, meaning that the company has no further refinancing needs until after 2023.
“This major refinancing is a further significant step for Epic Gas and will deliver material cost savings for the company over the next five years, whilst extending our maturity profile and improving liquidity. We welcome the confidence and trust placed in Epic Gas and our business model by our lenders, both existing and new, as we continue to build on our platform as the leading provider of seaborne services for the global pressurised LPG carrier market,” Uta Urbaniak-Sage, CFO of Epic Gas, said.
“We are determined to deliver a sustainable long term low-cost high-quality shipping solution for our customers, the refinancing of a significant part of our modern fleet further strengthens our competitive edge,” Charles Maltby, CEO of Epic Gas, added.
ABN AMRO and Crédit Agricole CIB were underwriters and bookrunning mandated lead arrangers, and were joined by two other mandated lead arrangers Skandinaviska Enskilda Banken AB (SEB) and Standard Chartered Bank.
In September 2019, the company refinanced its two 7,200 cbm units, Epic Bali and Epic Borneo, through a sale and leaseback transaction with an undisclosed Japanese ship owner. The transaction reduced the company’s interest and amortization by a total of USD 1.3 million for both ships.