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Grindrod Shipping refinances with new $83 million reducing revolver
By William Gullotti
Buffalo, N.Y., March 8 – Grindrod Shipping Holdings Ltd., via wholly owned subsidiary Grindrod Shipping Pte., Ltd., entered into a new $83 million reducing revolving credit facility on March 1, according to a 6-K filing with the Securities and Exchange Commission.
The new three-year facility, which was fully drawn on Friday, also includes a $30 million reducing revolving accordion feature.
Borrowings bear interest at term SOFR plus 265 basis points.
The parent company is the guarantor of the facility, which is also secured by a mortgage over eight vessels (namely IVS Phinda, IVS Sparrowhawk, IVS Thanda, IVS Tembe, IVS Sunbird, IVS Wentworth, IVS Swinley Forest and IVS Gleneagles) among other assets.
In addition to customary covenants, the guarantor must maintain cash and cash equivalents of no less than the higher of $500,000 per owned or bareboat chartered in vessel and 5% of its interest-bearing debt. Grindrod must also maintain an adjusted equity of no less than the higher of $175 million and 40% of the sum of its liabilities and adjusted equity. It must also maintain positive working capital.
The reducing revolver will be used to refinance the company’s $114.1 million senior secured credit facility with Credit Agricole CIB and Hamburg Commercial Bank AG.
Nordea Bank ABP, Filial I Norge is the facility agent and security agent. Skandinaviska Enskilda Banken AB (Publ), Singapore Branch was named as a lender.
Based in Singapore, Grindrod Shipping predominantly owns and operates a diversified fleet of owned and long-term and short-term chartered-in drybulk vessels.
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