Frontline Secures Financing for Eight Newbuildings
Tanker owner and operator Frontline has secured a commitment for a senior secured term loan facility of up to USD 321.6 million in November to partially finance eight of its newbuildings.
The company said that the loan, which will be provided by China Exim Bank and insured by China Export and Credit Insurance Corporation, matures in 2033, MANA correspondent reported.
With an interest rate of LIBOR plus a margin and an amortization profile of 15 years, the loan will be secured by Frontline’s four Suezmax tankers and four LR2 tankers.
In the three-month period, the shipping firm saw its net income plunge to USD 5.4 million from USD 61.8 million reported in the same quarter a year earlier. The company’s total operating revenues for the quarter increased to USD 157.1 million from USD 107.4 million.
During the first nine months of the year Frontline’s net income stood at USD 98.6 million, representing a slight increased from USD 96 million seen in the nine-month period in 2015, while its total operating revenues surged to USD 576 million from USD 304.9 million for the respective periods.