Euronav Secures Loan for VLCC Refinancing

Tanker shipping company Euronav NV announced it has signed a new $410 million senior secured amortizing revolving credit facility. The facility has been made available on December 16, 2016 for the purpose of refinancing 11 vessels as well as Euronav’s general corporate and working capital purposes.

The credit facility was used to refinance the $500 million senior secured credit facility dated March 25, 2014 and will mature on January 31, 2023 carrying a rate of LIBOR plus a margin of 2.25 percent.

Hugo De Stoop, CFO of Euronav said, “This new facility will provide a lot of flexibility for Euronav. It is a full revolving credit facility replacing a term loan, it has a lower margin (50 bps lower) than the facility it is refinancing, and it has a much longer maturity. The leverage is also more attractive and provides additional liquidity to the company. We believe that in today’s market bank loans are the best way to create shareholder’s value for the long term. The margin, the structure and the fact that it was 2.2 times oversubscribed are a token of our solid relationship with a stable group of supporting lenders.”

Following this refinancing and in accordance with IFRS, the Group recognized the remaining unamortized transaction costs of $5.5 million, relating to the previous facility, in financial expenses in the fourth quarter of 2016.

Nordea Bank Norge ASA led the facility and acted as coordinator. The mandated lead arrangers were ABN AMRO Bank N.V., Danish Ship Finance A/S (Danmarks, Skibskredit A/S), DNB (UK) Ltd., ING Bank, Nordea Bank Norge ASA and Skandinaviska Enskilda Banken AB (publ). These banks also acted as bookrunners. BNP Paribas Fortis SA/NV acted as lead arranger whilst Commonwealth Bank of Australia, KBC Bank NV and National Australia Bank Ltd. acted as co-arrangers. Nordea Bank AB (publ) is also the Facility Agent.

This credit facility will be secured by the following 11 VLCC vessels: Nectar (2008 -307,284 dwt.), Ilma (2012 – 318,477 dwt.), Iris (2012 – 318,478 dwt.), Nautic (2008 – 307,284 dwt.), Sara (2011 – 323,183 dwt.), Sonia (2012 – 322,000 dwt.), Sandra (2011 – 323,527 dwt.), Ingrid (2012 – 318,478 dwt.), Newton (2009 – 307,284 dwt.), Noble (2008 – 307,284 dwt.), Simone (2012 – 323,182 dwt.)