Globus Maritime amends, restates expanded $77.25 million term loan

By William Gullotti

Buffalo, N.Y., Aug. 18 – Globus Maritime Ltd. amended and restated its term loan facility with First-Citizens Bank & Trust Co. on Aug. 10, according to a 6-K filing with the Securities and Exchange Commission.

The borrowing capacity of the facility, initially signed for $34.25 million in May 2021 and upped to $52.25 million in August 2022, was increased to $77.25 million.

Borrowings bear interest at term SOFR plus a 10 basis point adjustment and a 270 bps margin, which jumps to 470 bps if a default occurs.

The term loan facility is comprised of eight tranches, each of which will be repaid quarterly, with the final installments of the first six tranches coming due in May 2026 and the remaining two in August 2027. Through May 2026, each installment will be for an aggregate amount of $1,935,606.06, followed by a $20,223,485 balloon payment in May 2026. Thereafter, the installments will be $500,000 until the final $17 million balloon payment comes due in August 2027.

Prepayments, dependent on the tranche, may be subject to a 2% prepayment fee until August 2024 or August 2025 when the fee steps down to 1%, subject to exceptions.

Prepaid and repaid amounts may not be reborrowed.

Globus reported entering into a Libor-based swap agreement and paying First-Citizens an upfront fee of 1.25% of the total loan commitments.

The amendments also added two previously unencumbered ships to the security package backing the facility. Each tranche is secured by a first preferred mortgage over an individual vessel and further guaranteed by Globus, which includes joint liability of each vessel’s owning companies. Those companies are Devocean Maritime Ltd., Domina Maritime Ltd., Dulac Maritime SA, Artful Shipholding SA, Serena Maritime Ltd., Salaminia Maritime Ltd., Argo Maritime Ltd. and Talisman Maritime Ltd.

The term facility further contains covenants that require the borrowers maintain a minimum $500,000 of liquidity and a minimum of $150,000 in the earnings account for each mortgaged ship. Globus must also maintain a minimum cash balance of $150,000 for each ship that it owns that is not part of the security package.

Additional covenants include a minimum loan to value ratio of 70% until May 2024 and 65% after May 2024, a maximum leverage ratio of 0.75 to 1.00 and, in the case of a dividend, a debt service coverage ratio of at least 1.15 to 1.00.

Further financial covenants apply to the owning companies, which include a requirement to create and maintain a reserve fund to meet anticipated dry docking and special survey fees associated with each ship.

The terms of the facility further prohibit changes of control and/or delisting of Globus from any internationally recognized exchange.

The dry bulk shipping company is based in Glyfada, Greece.

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