Excel Renegotiates Credit Agreements, Issues Shares
Excel Maritime Carriers Ltd. (EXM), an owner and operator of ships that transport raw commodities such as iron ore and coal, renegotiated covenants for two credit agreements and said it would issue $45 million in new equity.
The shipowner deferred $150.5 million in principal payments originally scheduled for this year and next to the expiration of the loans in April 2016, Excel said in a Market Wire statement. Loan covenants will be suspended until the end of 2010, according to the statement.
The margin on a loan from a group of banks led by Nordea Bank AB is now London Interbank Offered Rate plus 2.5 percent, the statement showed. The margin on a second loan with a group led by Credit Suisse Group AG (CSGN) is 2.25 percent plus Libor.
The shipowner is renegotiating terms with lenders after breaching loan covenants because the value of its vessels dropped when the shipping market declined. The Baltic Dry Index (BDIY), a measure of shipping rates, fell 92 percent last year.
Excel said it would provide more details on the renegotiation when fourth-quarter earnings are released on April 8. Excel, based in Athens, has 2.02 billion euros ($2.68 billion) in debt, Bloomberg data showed.
Separately, the family of Excel Chairman Gabriel Panayotides will issue $45 million in equity in the form of 25.7 million shares and 5.5 million warrants with an excise price of $3.50 each. The issuance is subject to a yearlong lockup beginning yesterday, the statement showed.
Nicolas Bornozis, an Excel spokesman who works for Capital Link Shipping, said he couldn’t immediately provide more details on the renegotiation.
Excel rose 22 cents to $4.74 in New York Stock Exchange composite trading. The shares have lost 84 percent in the past year.
To contact the reporter on this story: Todd Zeranski in New York at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org