Thursday, July 29, 2021
Tuesday, 22 June 2021 13:42

Safe Bulkers, Inc. Refinances $70 Million of Loan Facilities

Monaco – June 21, 2021— Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that the Company has entered into a credit facility of $70.0 million with a five-year tenor, comprising of a term loan tranche of $30.0 million and a reducing revolving credit facility tranche providing for a draw down capacity of up to $40.0 million, with respect to seven vessels. The agreement contains financial covenants in line with the existing loan and credit facilities of the Company.

The proceeds from the credit facility will refinance loan facilities of $64.3 million, in respect of eight vessels maturing in 2023, seven of which will secure the new credit facility and one of which will remain debt free. The company does not intend to utilize the full capacity of the revolving credit facility tranche at this time.

The refinancing transaction was evaluated and approved by the Board of Directors of the Company, excluding an independent member of the Board of the Company, who serves as the Chief Executive Officer of the financial institution that is the lender in the transaction.

As of March 31, 2021, we had $607.6 million of outstanding debt. Following voluntary debt prepayments and debt payments in relation to vessels sales or debt refinancing in the aggregate amount of $106.9 million, scheduled principal payments of $4.5 million and loan drawdown of $30.5 million, we had as of June 18, 2021, outstanding debt of $526.7 million. On a pro-forma basis following this refinancing and assuming no draw down under the revolving credit facility, we will have outstanding debt of $500.2 million and availability of $67.5 million under our revolving credit facilities.

Dr. Loukas Barmparis, President of the Company, said: “We continue our strategy of gradually deleveraging our Company and increasing the revolving credit facility component of our debt, which provides a greater flexibility and lower overall interest costs, targeting a lower leverage as we continue to renew our fleet with modern, energy efficient newbuild tonnage or second-hand tonnage from leading Japanese yards that will replace older or Chinese-built vessels.”

About Safe Bulkers, Inc.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s common stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.

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