NEW YORK: Gener8 Maritime, Inc. entered into a term loan facility (the “Citibank facility”), by and among the Company’s wholly-owned subsidiary, Gener8 Maritime Subsidiary VII Inc. (“GNRT Sub VII”); the Company as parent; the lenders party thereto; and Citibank, N.A., New York Branch as Facility Agent and Collateral Agent in order to fund a portion of the remaining installment payments due under the shipbuilding contract for one VLCC newbuilding owned by the Company. The Citibank facility provides for term loans up to the aggregate approximate amount of $60,174,000, which were drawn on October 23, 2015. The loans under the Citibank facility will mature on October 21, 2016, provided that if certain extension conditions are satisfied on or prior to the one-year anniversary of the effective date of the facility, the maturity date will be extended to October 21, 2020.
The extension conditions are as follows: (i) an event of default under the Citibank facility must not have occurred, (ii) GNRT Sub VII has must have paid Citibank, N.A., New York Branch in its capacity as Facility Agent, Collateral Agent and Mandated Lead Arranger, as well as the lenders party to the Citibank facility, all additional fees and other compensation due and payable under the facility, and (iii) the Company and GNRT Sub VII must have complied with certain requirements relating to the establishment, funding and pledge of a debt service account to be pledged to the lenders. If the Citibank facility is extended, GNRT Sub VII will be obligated to repay the Citibank facility in 19 equal consecutive quarterly installments, the earliest installment of which is payable on March 31, 2016 with the remainder (approximately 2/3 of the total loan amount) due at October 21, 2020. If the Citibank facility is not extended, all such quarterly installments occurring on or after December 31, 2016 shall be due and payable on October 21, 2016.
The Citibank facility bears interest at a rate per annum based on LIBOR plus a margin of 3.75% per annum. If there is a failure to pay any amount due on a loan under the Citibank facility, interest shall accrue at a rate 2.00% higher than the interest rate that would otherwise have been applied to such amount. The Citibank facility is secured on a first lien basis by a pledge by GNRT Sub VII of its interest in Gener8 Strength LLC (“GNRT Strength”) and a pledge by GNRT Strength, which is intended to own a vessel, of substantially all of its assets, and is guaranteed by the Company and GNRT Strength. In addition the Citibank facility is secured by a pledge of certain of the Company’s and GNRT Strength’s respective bank accounts.
The Company is also subject to various collateral maintenance, financial and other covenants, restrictions on payments of dividends, events of default and remedies that are substantially the same as those contained in the Refinancing Facility. Further, under the Citibank facility, GNRT Sub VII is required to use commercially reasonable efforts to obtain a credit facility with export credit insurance support from China Export and Credit Insurance Corporation for the post-delivery financing of up to 6 newbuildings as promptly as practicable. GNRT Sub VII is required to apply proceeds from any such credit facility to the repayment in full of the Citibank facility.
Shipping activity at Port Qasim on February 11
KARACHI: Three ships namely, Glen Canyon, Al-Salam- II and TSM Pollux carrying Containers, Gas oil and Palm oil were arranged...
