Ardmore Shipping Provides Update on Bank Financing
Successfully secures bank financing commitment for majority of vessels on
order and is in advanced discussions for additional financing
CORK, Ireland -- February 4, 2014
Ardmore Shipping Corporation (NYSE:ASC) ("Ardmore" or the "Company") today
announced that it has signed a commitment letter for a new $172 million credit
facility with ABN AMRO Bank N.V., Nordea Bank Finland Plc, and Skandinaviska
Enskilda Banken AB ("SEB").
The proceeds from the new facility are expected to be used to finance up to
65% of the purchase price of eight vessels on order in the Company’s current
fleet. The facility will be an amortizing senior term loan and available for
borrowing until April 2016 with a final maturity date in January 2021. The
covenants and other conditions are consistent with those of the Company’s
existing credit facilities. The terms include an accordion option whereby,
subject to lenders approval, Ardmore may request to increase the facility to
finance the acquisition of additional vessels.
Anthony Gurnee, the Company’s Chief Executive Officer commented:
"We appreciate the support of these leading banks and are pleased to have
secured this financing commitment to fund the expansion of our modern fleet of
product and chemical tankers. With this commitment, we will have successfully
financed the majority of the vessels on order in our current fleet well ahead
of their deliveries scheduled for late 2014 and 2015. We are also delighted to
further expand the relationship with ABN AMRO and welcome Nordea and SEB to
the Ardmore banking team. We look forward to working with them on this and
"Additionally, we are in advanced discussions with a number of leading
shipping banks on credit facilities related to our remaining two vessels on
order and the Ardmore Seamariner and expect to finalize those agreements in
the near term. At that time, we believe Ardmore will have secured debt
financing for its entire current fleet, including all vessels in operation and
all vessels on order."
About Ardmore Shipping Corporation:
Ardmore owns and operates a modern, fuel-efficient fleet of mid-size product
and chemical tankers. The Company is engaged in the seaborne transportation of
petroleum products and chemicals worldwide to oil majors, national oil
companies, oil and chemical traders, and chemical companies.Additional
information is available at the Company's websitewww.ardmoreshipping.com,
which is not a part of this press release.
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts. The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words
"believe," "anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "may," "should," "expect," "pending" and similar expressions
identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the failure of counterparties to fully
perform their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for tanker vessel capacity, changes in
our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our vessels, competition in the tanker industry,
availability of financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such financing
arrangements, 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, piracy or political events,
vessels breakdowns and instances of off-hires and other factors. Please see
our filings with the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties.
Investor Relations Enquiries:
The IGB Group
Mr. Leon Berman, 212-477-8438
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