Safe Bulkers, Inc. Enters into Second Sustainability-linked Credit Facility of $100 Million to Refinance Existing Loan Facilities
Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that the Company has entered into a new credit facility of $100.0 million with a five-year tenor secured with six vessels, comprising of a term loan tranche of $50.0 million and a reducing revolving credit facility tranche providing for a draw down capacity of up to $50.0 million reducing from its third year onwards. This agreement represents the Company’s second sustainability linked credit facility and incorporates incentive discount or increase on interest rate, linked to independently verified pre-determined emission targets.
The proceeds from the credit facility will refinance other facilities with aggregate outstanding of $70.4 million and of shorter maturities related to the same six vessels. The company does not intend to utilize in full the reducing revolving credit facility tranche at this time. The agreement contains financial covenants in line with the existing loan and credit facilities of the Company.
Dr. Loukas Barmparis, President of the Company, said: “This is the second sustainability linked refinancing action. In parallel, the Company further reduces its debt, reaching an optimum level by the year end, while it maintains quick access to capital through the reducing revolving credit facility component.”
Source: Safe Bulkers Inc.