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MPCC secures USD 100m in new undrawn revolving credit facility
MPC Container Ships ASA (MPCC) has entered into a new USD 100 million four-year revolving credit facility agreement with Hamburg Commercial Bank (HCOB) at attractive terms. The facility remains undrawn and replaces former CIT and HCOB revolving credit facilities with a total commitment of USD 75 million and maturities in 2024 and 2026, respectively, which were fully repaid and cancelled in the fourth quarter of 2023. After the debt repayment and entering into the new loan agreement, MPCC has no debt maturities until 2027.
The new revolving credit facility is secured by 14 vessels, thus releasing substantial collateral of 9 vessels previously included in the former financing facilities, resulting in 38 debt free vessels in the fleet. The debt repayment and new facility thus further strengthens MPCC’s balance sheet while preserving its low leverage and adding substantial flexibility for future opportunities.
“As we embark on the new year, the new financing facility strengthens our liquidity and expands our capacity to pursue selective, value-enhancing opportunities in alignment with our strategy, promoting long-term shareholder value creation,” said Moritz Fuhrmann, CFO of MPCC. “Adhering to our principles of clear and rational capital allocation, the recent debt repayments and the new loan facility will reduce financing costs, free up collateral, and improve our maturity profile. This enhances our financial flexibility ahead of the new year and unlocks additional value for our shareholders. We would like to express our gratitude to HCOB for their support throughout the process and for their continued cooperation.”
The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.