EXMAR meets financial covenants

Thursday, 11 July 2019
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Belgian gas carrier owner, EXMAR has provided an update on various financing schemes announced earlier.

On 26th June, 2019 the company fully repaid its outstanding senior unsecured bond. This was partly financed with a new, unsecured NOK650 mill (about $75 mill) bond issued by the company on 16th May, 2019, with final maturity in May, 2022 and partly with available resources.

EXMAR had previously announced the financing of an FSRU barge in the second quarter of 2019.

This financing package has since been approved by the credit committee of CSSC, but due to a delay in the documentation with CSSC, the financing has not been concluded yet. It is expected to be completed during the third quarter of this year.

Further to the successful performance acceptance tests of the ‘Tango’ FLNG on 5th June, 2019, EXMAR has met all the conditions for the partial release of the debt service reserve amounts for the repayment of the $200 mill loan with Bank of China and Deutsche Bank ($40 mill in a first phase).

This repayment is subject to the approval of SINOSURE, which was taking more time than previously communicated. EXMAR said that it will do its utmost to expedite this repayment, which was expected to occur during 3Q19.

Pending the settlement of the above mentioned credit files, EXMAR took a bridge loan of $30 mill to temporarily increase its liquidity.

Office sale

In addition, at the end of June, EXMAR signed an agreement with Compagnie Maritime Belge (CMB) for the sale of 50% of its shares in RESLEA, owner of the office buildings in Antwerp.

EXMAR will realise a capital gain of about $19 mill and therefore reinforce its balance and liquidity position, it said.

The company also gave instructions to pay the first instalment for the building of two VLGCs,with a value date of 8th July, 2019, which is in accordance with the shipbuilding contract with Jiangnan Shipyard.

Both vessels are under construction in Shanghai and will serve under a firm five-year charter with Equinor after their delivery in 2021.

EXMAR said that as per 30th June, 2019 all financial covenants were met and said it believed that they will also be met in December of this year.

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