Norway-based shipping company Grieg Star has completed a USD 400 million senior debt refinancing involving extended maturities for the financing of 23 vessels in the fleet.

Loans with original expiry set for 2017/2018 were extended for five or more years with new expiry being 2021 or beyond.

The refinancing was completed with five European banks.

“We are very pleased to have received continued support from quality financiers like DNB, Nordea, SR-Bank and ABN AMRO including establishing new relationships with Credit Suisse. This refinancing reflects our strong bank relationships and the importance of having capital sources available in a challenging market like what we see today,” Camilla Grieg, CEO of Grieg Star, said.

Grieg Star operates 45 open hatch and dry bulk vessels of which 31 vessels are on the balance sheet.

“The completed refinancing ensures long-term financing for all vessels owned by the company,” the company said.  

In addition to extending maturities, the refinancing sum will entail a cash release of more than USD 50 million. Together with the existing liquidity reserves, the added liquidity “will ensure strong cash reserves and financial strength going forward”, according to the company.

Grieg Star had previously secured financing of newbuilding commitments and has currently no unfunded future capital expenditures, as explained by the company.