rss icon Subscribe
desktop mobile

TORM Secures $496M for Debt Refinancing

Image: TORM

Laxman Pai

Denmark-based product tanker company TORM has obtained a commitment for a total of USD 496 million from a syndicate of lenders to refinance its debt and bolster its capital structure.

The carrier of refined oil products said the total amount is a combination of two separate term facilities and a revolving credit facility, which will be used to refinance the company's debt covering a total of USD 502 million.

Following the refinancing, TORM does not have any major debt maturities until 2026 which supports TORM's strong capital structure, it said.

"I am very pleased that we have been able to utilize TORM's strong relationship with our lenders to remove all major near- and medium-term debt maturities with the financing of USD 496m in debt facilities at attractive terms. TORM's new debt repayment profile further strengthens our capital structure and supports financial and strategic flexibility for our Company," said CFO Kim Balle.

The new term debt is structured as a Syndicated Facility of up to USD 341m with maturity in 2026 covering 27 modern vessels, a Term Facility of up to USD 110m with maturity in 2025 covering 19 vessels built between 2002 and 2006, and a USD 45m revolving credit facility maturing in 2026.

The new facilities remove a total of USD 252m 2021 maturity repayment (including currently undrawn amount). With the refinancing in place, TORM has reduced the near- and medium-term debt and lease repayments significantly to an average annual level of USD 108m throughout 2025, thereby supporting TORM's strong capital structure and enhancing the company's financial and strategic flexibility. The refinancing will only have a minor impact on TORM's net Loan-to-Value, which was 50% as per 30 September 2019.

The bank group in the Syndicated Facility and the revolving credit facility includes Danske Bank, ING, ABN AMRO, Nordea, Swedbank, Crédit Agricole CIB and Société Générale. Hamburg Commercial Bank is providing the USD 110m Term Facility.

TORM expects to finalize documentation and execute the refinancing during the first quarter of 2020.

Jan 14, 2020

 

People & Company News

New LNG Bunkering & Fuel Supply System Simulator

Photo: Wärtsilä

Wärtsilä has launched a new LNG Bunkering & Supply System simulator. The simulator will promote

SAAM Acquires Intertug

Image: Sociedad Matriz SAAM S.A

Chilean logistics company SAAM has struck a deal to buy Intertug Investment Holding

29,476 Vessels Arrive at Rotterdam Port

Photo: Kees Torn

2019 was a relatively safe year for shipping in the port of Rotterdam. Over the past year

Tankers

Guyana's First-Ever Oil Cargo Sets Sail for the U.S

Photo courtesy of Hess

A vessel carrying about 1 million barrels crude oil from Guyana set sail on Monday for the United

Dee4 Adds Vessel, Appoints New Partner

Jens Christensen. Photo: Dee4 Capital

The Danish private equity firm investing in shipping, Dee4 Capital, announced the takeover of its

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic

Maritime Apps