NOL completes financing of new containerships

It previously received firm financing offers of about US$1.14b.

Neptune Orient Lines said it has finalized and completed the loan agreements and financing documentation with all the various banks and financial institutions that are providing financing for its 12 new containerships.

NOL said:

These facilities are earmarked to finance the progress payments for the 12 containerships.

The last containership in this series is expected to be delivered in Q3 2014. Assuming all the loan facilities for the 12 new containerships were obtained as at the beginning of NOL’s Q4 2010 (18 September 2010) and were fully drawn as at the end of NOL’s Q3 2011 (23 September 2011), NOL expects the net gearing of the NOL Group to increase from 0.56 times to 0.95 times, based on a proforma basis as of end of Q3 2011.

Correspondingly, the finance costs will cause the loss per share to increase from 6.12 US cents to 6.44 US cents. Any interest expense arising prior to delivery of the containerships will be capitalized.