SOURCE: Navig8 Product Tankers Inc.

Navig8 Product Tankers Inc.

April 25, 2016 09:11 ET

Navig8 Product Tankers Inc. Announces $130.3 Million Senior Secured Credit Facility to Provide Post-Delivery Financing for Four 74,000 DWT LR1 Product Tankers

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LONDON, UNITED KINGDOM--(Marketwired - Apr 25, 2016) -  Navig8 Product Tankers Inc. (the "Company") (N-OTC: EIGHT), an international shipping company focused on the transportation of petroleum products, today announced that it has entered into a $130.3 million senior secured credit facility agreement with Citibank N.A., London Branch and CAIXABANK, S.A. (the "Credit Facility") to provide post-delivery financing for four of the Company's 74,000 DWT LR1 product tankers constructed or under construction at STX Offshore & Shipbuilding Co. Ltd, including the Navig8 Experience, which was delivered to the Company in March 2016.

The Credit Facility has two separate tranches -- a $26.1 million commercial tranche (the "Commercial Tranche") and a $104.2 tranche inured by Korean Trade Insurance Corporation (the "K-Sure Tranche"). Each drawdown from the Credit Facility shall be comprised of 20% from the Commercial Tranche and 80% from the K-Sure Tranche. The Credit Facility provides financing of approximately 65% of the contract price of these four vessels.

"With a blended margin over LIBOR below 2%, we are pleased to have secured attractively priced financing for these vessels," said Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers. "Thus far, we have raised over $1.3 billion through a combination of equity, senior debt and sale and leaseback financings. We will continue to seek diverse and inexpensive sources of capital as we continue to accept deliveries from our newbuilding program."

About Navig8 Product Tankers Inc.

Navig8 Product Tankers was established in 2013 as a joint venture between the Navig8 Group and DVB Bank to capitalize on anticipated strong supply/demand fundamentals and the accelerating growth of long-haul clean and dirty oil product cargo movements, driven by increasing geographic dislocations between producers and consumers. 

Navig8 Product Tankers maintains an orderbook of long-range (LR), eco-design product tankers, comprising 15 LR2 and 12 LR1 vessels. The company's fleet is contracted to operate in various product tanker pools managed by the Navig8 Group, the world's largest independent pool and commercial management company.

Navig8 Product Tankers is listed on the Norwegian OTC market under the symbol EIGHT.

Visit our website at www.navig8producttankers.com

Forward-Looking Statements and Distribution

This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Navig8 Product Tankers management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Navig8 Product Tankers cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, 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 or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

This communication is not for publication or distribution, directly or indirectly, in or into any state or jurisdiction into which doing so would be unlawful. The distribution of this communication may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions.

Contact Information

  • For Further Information, Please Contact:
    Nicolas Busch:
    Chief Executive Officer
    + 44 207 467 5888

    Rose & Company:
    +1 212 359 2228
    navig8products@rosecoglobal.com