Business
Seanergy Maritime Holdings Corp. Announces Successful Completion of $179 million Financial Restructuring
Restructuring of $117 million of senior secured loan facilities and $62 million of junior loan facilities and convertible notesNo outstanding debt maturities
About this update from Seanergy Maritime Holdings Corp.
[{"type":"text","content":"Restructuring of $117 million of senior secured loan facilities and $62 million of junior loan facilities and convertible notesNo outstanding debt maturities before the fourth quarter of 2022Reduction of interest rate and repayment instalments with positive impact on the cash break-even of the fleetRelaxation of financial covenants allowing for additional financial flexibility, including payment of dividends Aggregate debt reduction of $36 million in 2020 through the restructuring arrangements and scheduled debt amortization ATHENS, Greece, Jan. 12, 2021 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) (NASDAQ: SHIP) announced today that it has reached final agreements with certain of its senior lenders and junior lender, for the financial restructuring of a total of $179 million, consisting of four senior credit facilities (the “Senior Facilities”), three junior credit facilities (the “Jelco Loans”) and three junior convertible notes (the “Jelco Notes”). Following these agreements, the previously announced defaults and cross-defaults have been fully resolved. Pursuant to the restructuring terms, approximately $87 million of debt maturities falling due in 2020 have been extended to future periods, between December 2022 and December 2024, providing Seanergy with a clean two-year runway. In addition, the rescheduling of the amortization payments under certain of the Senior Facilities and the reduction of the interest rate across the junior loans and notes are expected to have a positive impact on the cash break-even of the Company going forward. Moreover, the Company’s lenders have agreed to cancel or amend certain financial covenants and security maintenance provisions under the Senior Facilities allowing for additional financial flexibility, including payment of dividends. Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer stated: “We are very pleased to announce the successful conclusion of the restructuring discussions with certain of our lenders. The discussions extended since the first quarter of 2020 and were finally concluded in an amicable manner. The agreed solutions provide Seanergy with a solid financial standing going forward, allowing us to pursue our strategy to enhance corporate value and pave the way to improved shareholder returns. Under the agreed restructuri...