• Follow Us On Our Preferred Social Media Platform:

Seanergy’s scrubber program in ‘landmark transaction’ with Cargill

15 Nov 2018

New York-listed Seanergy Maritime Holdings Corp. on Wednesday successfully concluded the refinancing of the 2011-built Capesize M/V Championship through a leasing agreement with commodities trading firm Cargill International SA.

The transaction is part of Seanergy’s scrubber installation and time-charter program announced on October 31, 2018.

Pursuant to the agreement, Seanergy has chartered back the vessel on a bareboat basis and subsequently entered it into a five-year time charter with Cargill at a rate which is linked to the 5-routes Time Charter average of the Baltic Exchange Capesize Index (BCI).

Cargill will also cover 100% of the equipment and installation cost for retrofitting the vessel with an exhaust gas cleaning system (scrubber).

Lastly, as part of the transaction, Seanergy has issued 1,800,000 common shares to Cargill. 

“I am very pleased to announce another landmark transaction for our company, and at the same time we are delighted to welcome Cargill to our shareholding structure, marking the commencement of a strategic partnership. Cargill has been historically one of the major charterers of our Capesize fleet,” said Stamatis Tsantanis, Seanergy Chairman & Chief Executive Officer.

“The vessel refinancing allows us to enhance our liquidity position while drastically reducing the underlying interest cost. Furthermore, the capital investment for the scrubber installation, which will be assumed by the Charterer, is increasing the market value of the Vessel and reflects positively on our NAV.

“Upcoming regulations, such as the global sulphur Cap, require thorough preparation and collaboration between shipowners and charterers. This agreement ensures the Company is compliant with upcoming legislation and adequately positioned to benefit from the potential fuel spread upside that may arise in the global bunker market.”

On top of the daily hire, Seanergy will receive an additional compensation based on the spread between the price of high sulphur fuel oil and the price of marine gas oil or other IMO-compliant and ISO certified low-sulphur fuel oil throughout the term of the time charter.

Moreover, Seanergy has continuous options to buy back the vessel during the whole five-year leasing period, at the end of which it has a purchase obligation at $13.5 million.

Related: Seanergy Maritime Holdings to install scrubbers in 50% of fleet

Published: 15 November, 2018

Related News

Featured News

Our Industry Partners

  • argus

PR Newswire