Grindrod Shipping Announces Sale of IVS Kawana and Umgeni

0
744
IVS KAWANA (Image Courtesy: Steven Watkins / Marine Traffic

Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH) (Grindrod Shipping), a global provider of maritime transportation services in the drybulk and product tanker sectors, announced it has received approval from IYO Bank on the new term loan facility for an amount up to approximately USD 31.4 million, the proceeds of which are expected to be used to finance a portion of the purchase price for our two owned Ultramax “eco” newbuild vessels, IVS Okudogo and IVS Prestwick, on their delivery in 3Q 2019.

As disclosed in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (SEC) on April 16, 2019, the facility is expected to have a seven-year term, repayable in quarterly installments with a balloon payment at the end of the repayment schedule, to bear interest at a rate of LIBOR plus 200 basis points per annum and to be secured by, amongst other security, the two newbuild vessels. The term loan facility will be subject to customary conditions precedent. We cannot assure you that we will successfully enter into a definitive agreement relating to this facility.

The Company also announced that it has contracted to sell to unaffiliated third parties the 2005-built handysize drybulk carrier IVS Kawana for a gross price of US$7.8 million and the 2011-built small product tanker Umgeni for a gross price of US$8.875 million in two separate transactions. The IVS Kawana is expected to deliver to the new owners on April 30, 2019 while the Umgeni is expected to deliver to its new owners by June 30, 2019.

Martyn Wade, the Company’s Chief Executive Officer, commented:

“We are pleased to have agreed an indicative term sheet to expand our relationship with IYO Bank, a leading Japanese financial institution, on competitive financing terms that demonstrate our continued access to attractive sources of capital. Our long-standing relationships with and access to Japanese shipyards, financial markets and trading houses is one of our key competitive strengths. In addition, the sales of the IVS Kawana, one of the oldest vessels in our fleet, and the Umgeni, one of our small product tankers built in China, continues our strategy of maintaining a modern, high quality fleet as we await delivery of our contracted newbuildings.”

Sea News, April 30