During the second quarter of 2019, John Fredriksen’s company entered into two new credit facilities, one for USD 93.7 million and one for USD 131.8 million, to refinance its obligations under the three non-recourse loan facilities which financed the 14 vessels acquired from Quintana Shipping in 2017. The new loans each have a five-year tenor and a 19-year age adjusted profile.
“The refinancing was done at favorable terms with both existing and new lenders. The refinancing reduces the cost of the debt for these vessels from a margin of 310 bps to 212 bps, and extends the amortization profile, which reduces the company’s daily running cash break even rates by USD 1,300 for these 14 vessels and by USD 200 for the entire fleet,” Per Heiberg, Chief Financial Officer of Golden Ocean Management AS, said.
