Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company")
today announced that it has signed a commitment letter for a new $172
million credit facility with ABN AMRO Bank N.V., Nordea Bank Finland
Plc, and Skandinaviska Enskilda Banken AB ("SEB").
The proceeds from the new facility are expected to be used to finance up
to 65% of the purchase price of eight vessels on order in the Company’s
current fleet. The facility will be an amortizing senior term loan and
available for borrowing until April 2016 with a final maturity date in
January 2021. The covenants and other conditions are consistent with
those of the Company’s existing credit facilities. The terms include an
accordion option whereby, subject to lenders approval, Ardmore may
request to increase the facility to finance the acquisition of
additional vessels.
Anthony Gurnee, the Company’s Chief Executive Officer commented:
"We appreciate the support of these leading banks and are pleased to
have secured this financing commitment to fund the expansion of our
modern fleet of product and chemical tankers. With this commitment, we
will have successfully financed the majority of the vessels on order in
our current fleet well ahead of their deliveries scheduled for late 2014
and 2015. We are also delighted to further expand the relationship with
ABN AMRO and welcome Nordea and SEB to the Ardmore banking team. We look
forward to working with them on this and future transactions.
"Additionally, we are in advanced discussions with a number of leading
shipping banks on credit facilities related to our remaining two vessels
on order and the Ardmore Seamariner and expect to finalize those
agreements in the near term. At that time, we believe Ardmore will have
secured debt financing for its entire current fleet, including all
vessels in operation and all vessels on order."
About Ardmore Shipping Corporation:
Ardmore owns and operates a modern, fuel-efficient fleet of mid-size
product and chemical tankers. The Company is engaged in the seaborne
transportation of petroleum products and chemicals worldwide to oil
majors, national oil companies, oil and chemical traders, and chemical
companies. Additional information is available at the Company's website www.ardmoreshipping.com,
which is not a part of this press release.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in order
to encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take advantage of
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in connection
with this safe harbor legislation. The words "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions identify
forward-looking statements.
The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's examination
of historical operating trends, data contained in our records and other
data available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which
are difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these expectations,
beliefs or projections.
In addition to these important factors, other important factors that, in
our view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the failure of
counterparties to fully perform their contracts with us, the strength of
world economies and currencies, general market conditions, including
fluctuations in charter rates and vessel values, changes in demand for
tanker vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, competition in the tanker industry, availability of financing
and refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents, piracy or
political events, vessels breakdowns and instances of off-hires and
other factors. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks and
uncertainties.
Copyright Business Wire 2014