Rickmers Maritime receives $350.6 debt refinancing offer

Sinking industry slashed the company’s debt capacity.

Marine transport company Rickmers Maritime received an offer from HSH Syndicate for a restructured secured amortising term loan facility of up to S$350.6 million (US$260.2 million). This is to refinance the company’s outstanding debt under existing facilities granted by its lenders.

Rickmers revealed that a successful entry into the new loan facility would extend the maturities of a large part of the company’s secured bank debts to the first quarter of 2021, and include a moratorium on principal repayments under the existing facilities to the fourth quarter of 2016, among other terms and conditions.

The company’s lenders include the HSH Syndicate, which comprises HSH Nordbank AG, and DBS Bank; and BNP Syndicate, comprising BNP Paribas, ING Bank NV, The Bank of Nova Scotia Asia Limited, The Hongkong and Shanghai Banking Corporation Limited, and Sumitomo Mitsui Trust Bank Limited.

“The current adverse industry conditions have affected the financial performance of the trust in terms of lower revenues, cash and asset values, which consequently reduced the trust’s debt capacity,” Rickmers explained.