Okeanis Eco Tankers Corp., announced yesterday that it has entered into a new $65.0 million secured term loan facility, to finance the previously announced declaration of its option to purchase back the Nissos Kea from its current sale and leaseback financier. The term loan facility is provided by a syndicate of banks, led and arranged by E.SUN Commercial Bank, Ltd. It contains an interest rate of Term SOFR plus 135 basis points, matures in seven years, and will be repaid in quarterly installments of $0.9 million, together with a balloon installment of $39.8 million at maturity. It will be secured by, among other things, a mortgage over the Nissos Kea, and it will be guaranteed by the Company. The term loan facility includes standard covenants. The transaction is expected to close in June 2025.
Iraklis Sbarounis, CFO of the Company, commented:
“Further to our earlier announcement in May, we are pleased to announce the new loan with respect to the Nissos Kea. This marks another step in expanding our footprint in this financing market, which we believe may become an important source of capital for us in the future. Together with the recently disclosed transactions of the Nissos Nikouria and Nissos Anafi, we now have secured new loans for our three youngest VLCC vessels, at what we believe to be very competitive terms and maturities extending to 2032. We view this as a reflection of the strength of the Company and the quality of our relationships with both longstanding and new financing partners.
Our ongoing focus on improving our capital structure is bearing fruit. We have meaningfully reduced our debt service breakeven costs, extended our maturity profile and expanded our financiers palette over the last few years, further advanced by the two most recent loan agreements. We believe there is additional potential to enhance our debt position when we reach the refinancing window of our last remaining sale and leaseback VLCCs, the Nissos Rhenia and Nissos Despotiko, in 2026. Until then we will generally continue to be on the lookout for financially accretive opportunities, if and when they arise.”
Source: Okeanis Eco Tankers Corp.