Grindrod completes sales of two of its medium-range tankers
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CAPE TOWN - GRINDROD Shipping Holdings, the JSE listed logistics group said yesterday that it had completed sales of the 2013-built medium-range tankers Leopard Moon and Leopard Sun.
In conjunction with the sales, approximately $24.7 million (R344.4m) debt remaining on the credit facility with NIBC Bank NV was repaid in full. The sales generated $17.9m in net proceeds after debt repayment with a further $2.7m release of restricted cash associated with the loan.
Last month’s sale of the 2009-built small tanker Breede, which constituted part of the security package for the group’s $100m senior secured credit facility and was released from the security package in connection with the closing of the transaction.
The group said that some $3.8m debt was repaid on the facility and the sale generated net proceeds to the company of $3m after debt repayment with a further $0.5m release of restricted cash associated with the loan.
The company used the net proceeds of the sales, together with cash on hand, to repay the $25.8m remaining outstanding amount on the senior secured credit facility with Sankaty maturing in June 2021.
Chief executive Martyn Wade said: “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, bank loans and other borrowings had been reduced by $66m.