Diamond S Shipping closes $360 million five-year credit facilities

By Sarah Lizee

Olympia, Wash., March 29 – Diamond S Shipping Inc. entered into a $360 million five-year senior secured term loan and revolving credit facility on Wednesday with Nordea Bank Abp, New York Branch as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility is secured by mortgages over 28 collateral vessels.

Loans are available in two tranches consisting of an up to $300 million term loan and up to $60 million in revolving loans, for a total amount not to exceed the lesser of 65% of the fair market value of the collateral vessels and $360 million.

Interest is Libor plus a margin of 265 basis points.

Commitment fees on undrawn amounts are 40% of the margin.

The secured term loan must be repaid in equal consecutive quarterly installments in an amount that reflects a straight-line amortization reducing the principal amount to zero upon the collateral vessels having achieved an average age of 17 years.

The credit agreement includes covenants relating to, among other things, the ability to incur debt, restrictions on payment of dividends, minimum cash balance, collateral maintenance, net debt to capitalization ratio and other customary restrictions.

Nordea Bank, Skandinaviska Enskilda Banken AB (publ) and Credit Agricole CIB are bookrunners and lead arrangers.

Diamond S is an energy shipping company providing seaborne transportation of crude oil, refined petroleum and other production in the international shipping markets. The company’s headquarters are in Greenwich, Conn.

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