TORM plc obtains commitment to refinance and extend existing bank facilities at very attractive terms
TORM obtains commitment for refinancing of USD 433m bank and leasing agreements with two new bank facilities, thereby extending debt maturities until 2028 and with a possibility to extend most of the debt expiration to 2029. Further, TORM has obtained commitment for financing of additional second-hand vessels for up to USD 123m with the same expiration terms.
The refinanced debt will be structured as a syndicated facilities agreement with six to nine banks of up to USD 322m, which will refinance 21 vessels built between 2009 and 2020, and a bilateral facilities agreement with HCOB of up to USD 111m, which will refinance 26 vessels built between 2003 and 2008.
“I am very pleased with the process we have had with our group of relationship banks and the new banks in our syndicate in order to obtain commitment for a refinancing. Together with this strong group of banks, we have secured a refinancing on very attractive terms, and I feel confident that we have set the group of banks for the years to come that can assist us in growing TORM’s business,” says CFO Kim Balle.
Danske Bank A/S, ING Bank N.V., and Nordea Bank Abp are appointed coordinators and mandated lead arrangers.
Closing of the agreements is subject to documentation and is expected during the second quarter of 2023.