Grindrod Shipping, a global provider of maritime transportation services predominantly in the drybulk sector, announced the completion of the following transactions and related debt repayments.
On April 12, 2021 and April 20, 2021, the Company completed the previously disclosed sales of the 2013-built medium range tankers Leopard Moon and Leopard Sun . In conjunction with the sales, approximately $24.7 million debt remaining on the credit facility with NIBC Bank N.V. was repaid in full. The sales generated net proceeds to the Company of $17.9 million after debt repayment with a further $2.7 million release of restricted cash associated with the loan.
On April 14, 2021, the Company completed the previously disclosed sale of the 2009-built small tanker Breede , which constituted part of the security package for our $100.0 million senior secured credit facility and was released from the security package in connection with the closing of the transaction. Approximately $3.8 million debt was repaid on the facility and the sale generated net proceeds to the Company of $3.0 million after debt repayment with a further $0.5 million release of restricted cash associated with the loan.
The Company utilized the net proceeds of the aforementioned sales, together with cash on hand, to repay the approximately $25.8 million remaining outstanding amount on the senior secured credit facility with Sankaty maturing in June 2021. The senior secured credit facility was formally terminated on May 21, 2021 upon confirmation of prepayment of all obligations thereunder.
Martyn Wade, the Company’s Chief Executive Officer, commented:
“We are very pleased to complete the sales of our last three spot trading product tankers and the full repayment of our credit facility with Sankaty. These sales have significantly reduced our leverage while positioning the Company to further focus on our core handysize and supramax/ultramax drybulk segments. Since the end of 2020, we have reduced our bank loans and other borrowings by approximately $66 million, or ~24%, while concurrently strengthening our liquidity, through a combination of tanker asset sales, scheduled debt amortization, and strong freight market conditions in our drybulk business.”