Globus Maritime Limited, a dry bulk shipping company, has successfully closed the refinancing of its six vessels through a Term Loan Facility with CIT Bank, N.A., the majority proceeds of which were used to repay the Company’s loan facility with EnTrust Global’s Blue Ocean Fund.
Athanasios (“Thanos”) Feidakis, President and CEO of Globus, commented:
“We are very pleased that we have managed to refinance our fleet by not only being able to extend the maturity of the loan but also by reducing the margin of our existing loan from 8.5% to 3.75% per annum, enabling us to save money in interest cost. For example, in 2021 we expect to save approximately $1.5 million compared to the costs of our previous loan agreement and, in 2022, when we will have completed a full year with this new CIT Bank loan and a lower outstanding principal balance, the savings in interest cost is expected to reach up to approximately $2.2 million compared to 2020. Additionally, we have also agreed to enter into interest rate swap transactions in order to hedge the exposure to interest rate fluctuations. Upon the completion of this transaction our bank debt stands at around $34 million, compared to total assets of the Company of around $144 million adjusted to reflect the market value of the six vessels. We believe our new financial position is healthy and will help us accomplish our long-term plans.”
