Business
Seanergy Maritime Holdings Corp. Announces Successful Closing of Refinancing Resulting in a Gain of $5.6 Million
ATHENS, Greece, July 21, 2020 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP) announced today the successful closing of
About this update from Seanergy Maritime Holdings Corp.
[{"type":"text","content":"ATHENS, Greece, July 21, 2020 (GLOBE NEWSWIRE) -- 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”). \n 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 agree...