Euronav, a Belgian Oil tanker and Storage firm, headquartered at Antwerp, has signed a 7-year-revolving credit facility with DNB Bank and Nordea. This arrangement will help to avail the credit facility by refinancing the existing loan agreements of $750 million and $65 million respectively. The new loan that was oversubscribed allowed the firm to reduce its margins from 300 bp over Libor to 195 bp.
This secured loan is to be used partly to buy new vessels in the current buoyant market, despite the fall in crude oil prices. Funds are also to be used to refinance 21 vessels and finance four VLCCs under construction at South Korea’s Hyundai Heavy Industries. Euronav has paid $ 384 million for the four new VLCCs. They are expected to be delivered between September 2015 – May 2016.
Paddy Rodgers, CEO of Euronav, said: “This new facility that was 1.35 times oversubscribed will provide a lot of flexibility for Euronav going forward. We believe that in today’s market bank loans are the best way to create shareholder’s value for the short as well as for the long term. The margin and the structure are a token of our solid relationship with a stable group of supporting lenders, and we are very grateful to be in such a strong position.”