Antwerp-based tanker owner and operator Euronav has signed a new USD 750 million senior credit facility to refinance previous loan agreements, as well as bankroll its fleet expansion program.
The new senior secured amortizing revolving credit facility will be used to refinance 21 vessels and finance four newbuilding very large crude carrier (VLCC) resales currently under construction at South Korea’s Hyundai Heavy Industries.
Euronav paid USD 384 million for the four new VLCCs, which are expected to be delivered from September 2015 to May 2016.
The new facility will refinance the USD 750 million loan agreement dated June 22, 2011 and the USD 65 million facility signed on December 23, 2011.
Paddy Rodgers, CEO of Euronav, said: “This new facility which was 1.35 times oversubscribed will provide a lot of flexibility for Euronav going forward. We believe that in today’s market bank loans are the best way to create shareholder’s value for the short as well as for the long term. The margin and the structure are a token of our solid relationship with a stable group of supporting lenders and we are very grateful to be in such a strong position.”