Navigator Gas enters up to $147.6 million credit deal

Navigator Holdings (Navigator Gas), a UK-based owner and operator of the “world’s largest” fleet of handysize liquefied gas carriers, has entered into a secured term loan and revolving credit facility with Credit Agricole Corporate and Investment Bank, ING Bank and Skandinaviska Enskilda Banken.

The company revealed it will borrow up to a maximum amount of $147.6 million to refinance its existing March 2019 secured loan facility, to fund the repurchase of the Navigator Aurora vessel and for general corporate and working capital purposes.

The loan will be available to Navigator Gas in two tranches. The first, in the amount of up to $100.8 million will be used to repay the March 2019 secured loan facility, not later than August 31, 2024, in the amount of $58.9 million, and thereafter be available for general corporate and working capital purposes. The second, in the amount of up to $46.8 million will be available to fund the repurchase of Navigator Aurora not later than October 31, 2024, in the amount of $44.8 million, and thereafter be available for general corporate and working capital purposes.

According to Navigator Gas, the agreement will “mature” in August 2030 and is secured by up to five of the company’s vessels.

Mads Peter Zacho, Navigator Gas’ CEO, commented: “This new facility underscores our commitment to improving our already strong financial footing with significant cost savings while enhancing our operational flexibility. The sustainability-linked adjustment in the facility agreement reflects our ongoing efforts to meet environmental standards, which includes reducing emissions and improving fuel efficiency across our fleet.”

To remind, in August 2024, Navigator Gas unveiled a co-investment in Ten08 Energy, which is developing an industrial-scale hybrid blue and green ammonia production export facility on the Gulf Coast of Texas, U.S., with the goal of producing “the most competitively priced” ammonia molecule to help decarbonize the power, shipping, fertilizer and chemicals industries.

According to Navigator Gas, the parties intend to offer an integrated service of U.S.-based clean ammonia production combined with international seaborne transportation of ammonia on ammonia-powered gas carriers to Ten08’s customers in Europe and Asia.

It is worth mentioning that in April 2024, the company carried out its first ship-to-ship ammonia transfer as part of its efforts to accelerate the transition towards zero-emission shipping. In 2023, it also secured a 14.5% interest in the Norwegian ammonia bunkering startup Azane Fuel Solutions.