Benzinga | Jan 18, 2022 09:08AM EST

Castor Maritime Announces $55.0M Debt Financing, New Charter Agreement

Castor Maritime Inc. (NASDAQ:CTRM), ("Castor", or the "Company"), a diversified global shipping company, announces the closing and drawdown of a $55.0 million senior term loan facility with a European bank (the "$55.0 Million Financing"), through, and secured by, five of its dry bulk vessel ship-owning subsidiaries and guaranteed by the Company. The Company intends to use the net proceeds from the $55.0 Million Financing for general corporate purposes, including supporting the Company's growth plans.



The $55.0 Million Financing has a tenor of five years and bears interest at adj. SOFR plus 3.15% per annum.

Mr. Petros Panagiotidis, Chief Executive Officer of Castor, commented:

"We are happy to announce the closing of this new debt financing, our largest to date, and the commencement of a new relationship with a leading European financial institution.

We believe that this new debt financing improves our capital structure and enhances our ability to pursue our strategic goals and growth objectives."

New Charter Agreement

The M/V Magic Callisto, a 2012 built Panamax dry bulk carrier, has been fixed on a time charter contract at a gross daily charter rate equal to 101% of the average of the Baltic Panamax Index 4TC routes1. The charter commenced on January 12, 2022, and has a minimum duration of nine months and a maximum duration of about twelve months (+/- 15 days) at the charterer's option.

2 The benchmark vessel used in the calculation of the average of the Baltic Panamax Index 4TC routes is a non-scrubber fitted 74,000mt dwt vessel (Panamax) with specific age, speed - consumption, and design characteristics.