Seanergy Maritime Holdings Corp. Announces Successful Closing of Refinancing Resulting in a Gain of $5.6 Million
July 21 2020 - 8:00AM
Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today the successful closing of the previously announced
refinancing of a credit facility secured by two of its Capesize
vessels, M/V Geniuship and M/V Gloriuship (the “Previous
Facility”), with a new credit facility secured by the same vessels
(the “New Facility”).
The outstanding balance of the Previous Facility
was $29.1 million, was retired for an amount of $23.5 million
following a reduction accepted by the previous lender. The
settlement resulted into a material $5.6 million gain and equity
accretion for the Company that will be recorded in its financial
results for the third quarter and nine months ending September 30,
2020. The settlement amount was funded by a combination of proceeds
from the New Facility and cash on hand.
The New Facility has an initial balance of $22.5
million, a five-year term and reduced quarterly repayments that
will positively impact the break-even rates of the underlying
vessels, as well as less restrictive financial covenants and value
maintenance provisions enhancing the Company’s financial
flexibility. This refinancing and the settlement achieved with the
outgoing lender will result in a $6.6 million aggregate reduction
in the Company’s debt.
Seanergy is in advanced discussions with other
lenders of the Company with maturities falling due in 2020 with the
objective of extending the maturities and improving the financing
terms of these facilities.
Stamatis Tsantanis, the Company's
Chairman & Chief Executive Officer, stated:
“We are pleased to announce another important
achievement for Seanergy. The closing of this refinancing has
resulted in a $6.6 million debt reduction and a $5.6 million equity
accretion, both of material significance for our Company.
As mentioned in our recent earnings release, the
first half of 2020 was one of the most challenging periods in the
history of drybulk shipping. Capesize daily spot rates averaged
approximately $7,000 through Q1 and Q2, which is a fraction of the
normalized mid-cycle rates of approximately $25,000.
During this period, we acted to further
strengthen our balance sheet by raising equity from our
shareholders to reduce our debt levels and capitalize on market
opportunities. The recent acquisition of the M/V Goodship was
agreed at a historically low value. In addition, the refinancing of
the credit facility announced today will result in a $6.6 million
debt reduction on our balance sheet.
We are also in advanced discussions with the
remaining lenders of the Company with maturities falling due in
2020 to extend the maturities and improve the financing terms of
these facilities. We expect to announce the positive outcome of
these discussions soon.
In the second half of 2020, the Capesize market
has improved significantly and the average daily spot rates are at
approximately $26,000. Seanergy will continue to pursue
opportunities that will serve our strategic targets and further
delever the Company during what we expect to be a much stronger
market environment.”
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the U.S. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. Upon delivery of the latest acquisition
of the Company, which is scheduled for the first week of August,
2020, Seanergy's operating fleet will consist of 11 Capesize
vessels with an average age of 11.5 years and aggregate cargo
carrying capacity of approximately 1,926,117 dwt. The Company
is incorporated in the Marshall Islands and has executive offices
in Athens, Greece and an office in Hong Kong. The Company's common
shares trade on the Nasdaq Capital Market under the symbol "SHIP",
its Class A warrants under "SHIPW" and its Class B warrants under
“SHIPZ”.
Please visit our company website at:
www.seanergymaritime.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates" and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's operating
or financial results; the Company's liquidity, including its
ability to service its indebtedness; competitive factors in the
market in which the Company operates; shipping industry trends,
including charter rates, vessel values and factors affecting vessel
supply and demand; future, pending or recent acquisitions and
dispositions, business strategy, areas of possible expansion or
contraction, and expected capital spending or operating expenses;
risks associated with operations outside the United States; and
other factors listed from time to time in the Company's filings
with the SEC, including the Registration Statement and its most
recent annual report on Form 20-F. The Company's filings can be
obtained free of charge on the SEC's website at www.sec.gov. Except
to the extent required by law, the Company expressly disclaims any
obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with respect
thereto or any change in events, conditions or circumstances on
which any statement is based.
For further information please
contact:
Capital Link, Inc. Judit Csepregi 230 Park
Avenue Suite 1536 New York, NY 10169 Tel: (212) 661-7566 E-mail:
seanergy@capitallink.com
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