Benzinga | Dec 16, 2021 09:17AM EST

Seanergy Maritime Announces Refinancing Of Existing Vessel Resulting In Significant Cashflow And P&L Benefit

Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ:SHIP) announced today that it has entered into a definitive agreement for the refinancing of a loan facility secured by M/V Geniuship, with a new loan facility secured by the same vessel.

The current outstanding balance is provided by certain nominees of Entrust Global and stands at $14.6 million. The Entrust facility has a remaining duration of 3.5 years, bears interest at a fixed rate of 10.5% per annum and amortizes through quarterly instalments of $515,000.

The new loan facility will be provided by a prominent Far Eastern bank (the 'New Facility'), has an initial balance of $15 million, a five-year term and bears interest of LIBOR + 3.5% per annum. The New Facility will amortize through 4 quarterly instalments of $530,000 followed by 16 quarterly instalments of $385,000.

The significantly lower interest rate, as well as the reduced quarterly repayments agreed for 2023 onwards, will further improve the break-even rates of the underlying vessel. In addition, the interest savings for the Company are expected to be $0.9 million for 2022 and $0.5 million on average per year for 2023-25.

As of the date of this release and pro-forma for this refinancing, which is expected to close within December, Seanergy's total indebtedness will be approximately $242.7 million, consisting of $221.0 million debt and other financial leases and $21.7 million in unsecured convertible notes, while total cash and cash equivalents, restricted cash and term deposits of the Company are expected to be approximately $45.0 million.