TORM has obtained commitment from leading ship lending banks for two separate term facilities and a revolving credit facility of up to a total of USD 496m. These facilities replace four term loans and TORM’s existing revolving credit facility that all together on a fully drawn basis cover USD 502m in debt. Following the refinancing, TORM does not have any major debt maturities until 2026 which supports TORM’s strong capital structure.
“I am very pleased that we have been able to utilize TORM’s strong relationship with our lenders to remove all major near- and medium-term debt maturities with the financing of USD 496m in debt facilities at attractive terms. TORM’s new debt repayment profile further strengthens our capital structure and supports financial and strategic flexibility for our Company,” says CFO Kim Balle.
The new term debt is structured as a Syndicated Facility of up to USD 341m with maturity in 2026 covering 27 modern vessels, a Term Facility of up to USD 110m with maturity in 2025 covering 19 vessels built between 2002 and 2006, and a USD 45m revolving credit facility maturing in 2026. The new facilities remove a total of USD 252m 2021 maturity repayment (including currently undrawn amount). With the refinancing in place, TORM has reduced the near- and medium-term debt and lease repayments significantly to an average annual level of USD 108m throughout 2025, thereby supporting TORM’s strong capital structure and enhancing the Company’s financial and strategic flexibility. The refinancing will only have a minor impact on TORM’s net Loan-to-Value, which was 50% as per 30 September 2019.
TORM is pleased to continue the strong relationship with our existing lenders and also to expand the group of lending banks supporting future business opportunities in the Company. The bank group in the Syndicated Facility and the revolving credit facility includes Danske Bank, ING, ABN AMRO, Nordea, Swedbank, Crédit Agricole CIB and Société Générale. Hamburg Commercial Bank is providing the USD 110m Term Facility. TORM expects to finalize documentation and execute the refinancing during the first quarter of 2020.
