SOURCE: Navig8 Product Tankers Inc.

Navig8 Product Tankers Inc.

January 11, 2016 07:46 ET

Navig8 Product Tankers Inc. Announces the Delivery of Two Product Tankers and an Increased $128.5 Million Credit Facility

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LONDON, UNITED KINGDOM--(Marketwired - Jan 11, 2016) -  As previously announced, Navig8 Product Tankers Inc. (the "Company") (N-OTC: EIGHT), an international shipping company focused on the transportation of petroleum products, has recently taken delivery of the Navig8 Excelsior, a LR1 74,000 DWT product tanker from STX Offshore & Shipbuilding Co, Ltd., as well as the Navig8 Stability, a LR2 115,000 DWT product tanker built at Sungdong Shipbuilding & Marine Engineering Co, Ltd. Both vessels will enter and be operated in commercial pools managed by the Navig8 Group. Overall, the Company has taken delivery of two LR2 and two LR1 product tanker newbuildings thus far and anticipates that its entire newbuilding fleet will be delivered by the end of 2016.

Separately, the Company has entered into an amended secured commercial loan facility for $128.5 million with Credit Agricole Corporate and Investment Bank ("CACIB") and BNP Paribas to provide additional financing for LR1 74,000 DWT product tankers being built at STX Offshore & Shipbuilding Co. Ltd. 

"We are pleased to report that we have completed further steps to finance our newbuilding program," said Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers. "Thus far, we have closed senior debt and sale and leaseback financings for 19 vessels, including the vessels that will be financed under the amended facility with Credit Agricole and BNP Paribas. We are also excited to continue to take delivery of our vessels on schedule and that the Navig8 Excelsior and Navig8 Stability have delivered into a strong product tanker market."

The initial $64.3 million loan facility with CACIB, which was announced in November 2015, covered the first two newbuilding contracts at STX. Under the amended loan facility, the third and fourth newbuilding contracts at STX have been financed. The debt financing will cover approximately 65% of the contract price of each of these four vessels.

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.

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.

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