Seanergy Maritime announces successful closing of refinancing
Seanergy Maritime Holdings Corp. announced today the successful closing of the previously announced refinancing of a credit facility secured by two of its Capesize vessels, M/V Geniuship and M/V Gloriuship, with a new credit facilitysecured by the same vessels.
The outstanding balance of the Previous Facility was $29.1 million, was retired for an amount of $23.5 millionfollowing a reduction accepted by the previous lender. The settlement resulted into a material $5.6 million gain and equity accretion for the Company that will be recorded in its financial results for the third quarter and nine months ending September 30, 2020.
The settlement amount was funded by a combination of proceeds from the New Facility and cash on hand. The New Facility has an initial balance of $22.5 million, a five-year term and reduced quarterly repayments that will positively impact the break-even rates of the underlying vessels, as well as less restrictive financial covenants and value maintenance provisions enhancing the Company’s financial flexibility.
This refinancing and the settlement achieved with the outgoing lender will result in a $6.6 million aggregate reduction in the Company’s debt. Seanergy is in advanced discussions with other lenders of the Company with maturities falling due in 2020 with the objective of extending the maturities and improving the financing terms of these facilities.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. Upon delivery of the latest acquisition of the Company, which is scheduled for the first week of August, 2020, Seanergy's operating fleet will consist of 11 Capesize vessels with an average age of 11.5 years and aggregate cargo carrying capacity of approximately 1,926,117 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Athens, Greece and an office in Hong Kong. The Company's common shares trade on the Nasdaq Capital Market 2 under the symbol "SHIP", its Class A warrants under "SHIPW" and its Class B warrants under “SHIPZ”.
