Klaveness: USD 80 million sustainability-linked term loan facility signed

Reference is made to Klaveness Combination Carriers ASA’s third quarter 2021 report and information related to the ongoing refinancing of a bank facility that falls due in March 2022.
KCC has today signed a up to USD 80 million senior secured sustainability linked term loan credit facility agreement (the “Facility”) to refinance the existing facility. The Agreement is subject to standard closing procedures and the closing is expected to be completed in December 2021.

Nordea and Danske Bank acted as Mandated Lead Arrangers and Sustainability Agents.

Highlights from the refinancing:

• The interest rate on the Facility will be LIBOR + 210bps, a 20bps reduction compared to the margin on the existing facility. The margin will be adjusted, up or down, based on KCC’s sustainability performance, as defined by the Company’s ability to meet its goal of reducing CO2 emissions per ton of transported cargo per nautical mile (EEOI) and reducing absolute CO2 emissions per vessel

• The Facility will refinance the CABU vessels MV Bantry, MV Bakkedal, MV Baffin, MV Ballard and MV Balboa built 2005-2017. The vessels MV Bangor and MV Barcarena, which is financed under the existing facility, will be left unencumbered

• The Facility will mature in December 2026 and has a repayment profile of 9.2 years reflecting an age adjusted eighteen to zero repayment profile based on the average age of the vessels

• The refinancing is expected to generate cash proceeds of approximately USD 9.7 million
Source: Klaveness Combination Carriers ASA