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.
Published: 15 November, 2018
The newly launched Code of Best Practices – Commodity Financing guidelines will be the new ‘reference point’ taken by banks when considering to give trade finance to trading houses, believes Ian Teo.
Captain Daknash Ganasen, Senior Director (Operations & Marine Services), MPA, provides direction on what should players do when providing bunker fuel to a COVID-19 infected ship, and more.
Garren Hay will be responsible for sales of the PANOLIN range of Environmentally Acceptable Lubricants for the Singapore sole distributor agent Gealubes Consulting & Trading Pte Ltd.
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.