Sep 27, 2023

No Comments (Alliance News) – Taylor Maritime Investments Ltd. announced on Wednesday that it has agreed to replace its existing revolving credit facility and acquisition facility with a new RCF with Nordea Bank Abp, Filial i Norge and Skandinaviska Enskilda Banken AB. The Guernsey-based shipping investment company said the acquisition facility is related to its acquisition of a majority stake in Grindrod Shipping Holdings earlier this year. In connection with the financing, Taylor Maritime will make a net principal repayment of approximately $27 million, reducing outstanding debt from $194.9 million to $167.6 million. Based on end-June market values, Taylor Maritime is expected to reduce its debt-to-gross assets ratio to 25.1%. Since the closing of the Grindrod transaction in December 2022, Taylor Maritime will have paid off a total of USD91 million in debt, primarily from proceeds from asset sales. Taylor Maritime said the new RCF has a lower margin compared to the existing RCF and the acquisition facility and matures in March 2027. Taylor Maritime also noted a positive development in the shipping market since the beginning of August, with a 74% increase in the adjusted Baltic Handysize Index Time Charter Average, which hit a five-month high of $10,204 per day. At the same time, the Baltic Supramax Index Time Charter Average rose 97% to USD 14,899 per day over the same period, which Taylor Maritime said represents a “level not seen since November 2022.” Taylor Maritime said the improvement in rates in the dry bulk carrier segment was driven by record corn exports and strong soybean exports from Brazil. “There has also been some congestion from the Panama Canal transit restrictions, which has resulted in higher fleet utilization, so ships have been tied up for longer,” Taylor Maritime said. Chief executive Edward Buttery said: “Since the Grindrod transaction, our top priority has been to deleverage the balance sheet. We have achieved this through proactive asset sales while maintaining balanced strategic fleet management. Taylor Maritime has added five vessels so far this year sold, including two to our subsidiary Grindrod at normal market conditions. “Grindrod has announced seven asset sales during the year to date, which have provided them with excess cash, as reflected in the proposed capital reduction, with an initial distribution in the [dritten Quartal] of the current financial year is expected. “The completion of the refinancing of [Taylor Maritime] is another significant step forward with a net redemption of $27 million and a reduction in margin. We will continue deleveraging through select asset sales while maintaining an optimal number of vessels in operation to benefit from an improving earnings environment.” Shares in Taylor Maritime rose 0.7% to 74.50 pence apiece late on Wednesday morning in London. By Greg Rosenvinge, Alliance News reporter