Seanergy Maritime Announces New Term Loan of $28 million to Refinance Existing Facility at Reduced Cost

Rhea-AI Summary

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) has successfully closed a $28 million term loan, secured by its Capesize vessels, M/V Fellowship and M/V Premiership. The new financing features an interest rate of 2.50% plus SOFR, improving upon the previous loan's rate of 3.50% plus LIBOR. The loan will amortize over five years with quarterly installments of approximately $1.2 million and a $4.1 million balloon payment due at maturity. This refinancing enhances Seanergy's liquidity and establishes a relationship with a notable European lender.

Positive

• Successful refinancing of $28 million loan at a lower interest rate of 2.50% plus SOFR, compared to the previous 3.50% plus LIBOR.
• Improved liquidity position for the company with scheduled amortization over five years.
• Establishment of a strategic relationship with a prominent European financing institution.

Negative

• None.

GLYFADA, Greece, Oct. 13, 2022 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) announced today the closing of its previously announced $28.0 million term loan secured by two 2010-built Capesize vessels, M/V Fellowship and M/V Premiership, with a prominent European financing institution.

The facility has refinanced an existing facility at an interest rate is 2.50% plus SOFR per annum compared to 3.50% plus LIBOR in the previous facility secured by the same vessels. The $28 million principal will amortize over a five-year term through quarterly instalments averaging approximately $1.2 million and a $4.1 million final balloon payment at maturity.

Stavros Gyftakis, the Company’s Chief Financial Officer, stated:

“We are very pleased with the timely refinancing of these two vessels at improved pricing terms, which is particularly important in today’s rising interest rate environment.

“Acting proactively, we have addressed all loan maturities for the next 12 months. The transaction has another strategic element for Seanergy, as we have initiated a valuable relationship with a prominent European lender, expanding further our financing sources.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company's operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,020,012 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company's common shares trade on the Nasdaq Capital Market under the symbol “SHIP”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company's operating or financial results; the Company's liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from war (or threatened war) or international hostilities, such as between Russia and Ukraine; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company's filings with the SEC, including its most recent annual report on Form 20-F. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

FAQ

What is the significance of Seanergy's recent $28 million term loan?

The loan refinances existing debt at a lower interest rate, enhancing liquidity and financial stability.

How does the interest rate of Seanergy's new loan compare to the previous facility?

The new loan has an interest rate of 2.50% plus SOFR, compared to the previous rate of 3.50% plus LIBOR.

What vessels secured the $28 million term loan for Seanergy Maritime?

The loan is secured by two vessels: M/V Fellowship and M/V Premiership.

What is the repayment schedule for Seanergy's $28 million loan?

The loan will amortize over five years with quarterly payments averaging approximately $1.2 million and a final balloon payment of $4.1 million.

How does Seanergy's refinancing affect its financial position?

This refinancing improves Seanergy's liquidity and addresses all loan maturities for the next 12 months.