- Restructuring of $117 million of senior secured mortgage services and $62 million of junior mortgage services and convertible notes
- No excellent debt maturities earlier than the fourth quarter of 2022
- Discount of rate of interest and reimbursement instalments with optimistic impression on the money break-even of the fleet
- Rest of economic covenants permitting for added monetary flexibility, together with fee of dividends
- Mixture debt discount of $36 million in 2020 by way of the restructuring preparations and scheduled debt amortization
ATHENS, Greece, Jan. 12, 2021 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (“Seanergy” or the “Firm”) (NASDAQ: SHIP) introduced at the moment that it has reached ultimate agreements with sure of its senior lenders and junior lender, for the monetary restructuring of a complete of $179 million, consisting of 4 senior credit score services (the “Senior Services”), three junior credit score services (the “Jelco Loans”) and three junior convertible notes (the “Jelco Notes”). Following these agreements, the beforehand introduced defaults and cross-defaults have been absolutely resolved.
Pursuant to the restructuring phrases, roughly $87 million of debt maturities falling due in 2020 have been prolonged to future durations, between December 2022 and December 2024, offering Seanergy with a clear two-year runway. As well as, the rescheduling of the amortization funds underneath sure of the Senior Services and the discount of the rate of interest throughout the junior loans and notes are anticipated to have a optimistic impression on the money break-even of the Firm going ahead. Furthermore, the Firm’s lenders have agreed to cancel or amend sure monetary covenants and safety upkeep provisions underneath the Senior Services permitting for added monetary flexibility, together with fee of dividends.
Stamatis Tsantanis, the Firm’s Chairman and Chief Government Officer said:
“We’re more than happy to announce the profitable conclusion of the restructuring discussions with sure of our lenders. The discussions prolonged for the reason that first quarter of 2020 and had been lastly concluded in an amicable method. The agreed options present Seanergy with a stable monetary standing going ahead, permitting us to pursue our technique to reinforce company worth and pave the way in which to improved shareholder returns.
Below the agreed restructuring, there are not any imminent mortgage maturities or underlying defaults, our steadiness sheet has been delevered by way of the extinguishment of debt and accrued curiosity and our future money stream is anticipated to enhance by way of decreased curiosity expense and debt amortization funds within the subsequent years. Our total debt has seen a formidable year-over-year discount of $36.0 million by way of the restructuring initiatives and the uninterrupted servicing of the scheduled amortization funds.
Regardless of the worldwide challenges offered in 2020, we have now delivered milestone transactions, together with the outstanding restructuring of our debt, fleet enlargement and helpful industrial agreements. Seanergy, as the one pure-play Capesize vessel proprietor listed within the US capital markets, is in a terrific place to seize what we consider is important upside potential in a rising market.”
A abstract of the assorted restructuring preparations is offered beneath:
Alpha Financial institution SA (“Alpha Financial institution”) Extension and Amendments
As beforehand disclosed, we documented the settlement with Alpha Financial institution for the extension of two mortgage services secured by two of our Capesize vessels from March 17, 2020 and November 10, 2021, to December 31, 2022. The underlying phrases remained considerably the identical whereas as well as, sure company covenants and dividend restrictions had been cancelled or relaxed. We’re at present in compliance with all of the phrases of those services as amended.
Hamburg Business Financial institution AG (“HCOB”) Refinancing and Entrust World Facility (“Entrust facility”)
As beforehand disclosed, we entered right into a settlement settlement with HCOB for the power secured by two of our Capesize vessels, underneath which the $29.1 million excellent steadiness was settled for $23.5 million leading to a $5.6 million debt extinguishment and an equal acquire for Seanergy. The HCOB facility was refinanced by a brand new facility supplied by sure nominees of Entrust World and secured by the identical vessels. The Entrust facility with an preliminary steadiness of $22.5 million, has a five-year time period and decreased quarterly repayments which have positively impacted the break-even charges of the underlying vessels, in addition to much less restrictive monetary covenants and worth upkeep provisions. These developments resulted in a $6.6 million mixture discount within the Firm’s debt. We’re at present in compliance with all of the phrases of the Entrust facility.
UniCredit Financial institution AG (“UCB”) Extension and Amendments
The Firm obtained credit score committee approval for the extension of the maturity of the UCB facility secured by two of its Capesize vessels, by two years, from December 2020 to December 2022. Furthermore, the approval supplies for the cancellation of varied monetary covenants and worth upkeep provisions. Most significantly, the lender has agreed to the discount of the quarterly installments from $1.55 million to $1.2 million, on the premise of which, the all-in money break-even of the underlying vessels has improved by roughly $1,900 per day. The settlement is topic to completion of definitive documentation.
Amsterdam Commerce Financial institution (“ATB”) Amendments
The Firm acquired credit score committee approval from ATB in regards to the modification of the worth upkeep provisions and of sure monetary covenants underneath the ATB facility secured by one in every of our Capesize vessels. Such amendments will handle potential non-compliance points whereas offering for a uniform method within the monetary covenants throughout all the Firm’s senior mortgage services. The settlement is topic to completion of definitive documentation.
Jelco Loans and Notes Extensions and Amendments
On December 30, 2020 we entered into definitive documentation with Jelco Delta Holding Corp. (“Jelco”), the Firm’s sole junior creditor, regarding $27.2 million of maturities falling due in 2020 and the settlement of accrued and unpaid curiosity by way of December 31, 2020. Jelco is a former affiliate of and associated celebration to the Firm and pursuant to this settlement, $6.5 million of principal indebtedness underneath one of many Jelco Loans was repaid, whereas all different maturities, together with these of two Jelco Notes that had been maturing in December 2022, had been prolonged to December 2024. As well as, Jelco has agreed to the discount of the relevant rate of interest throughout all Jelco Loans and Jelco Notes to a set charge of 5.5% (beforehand floating based mostly on LIBOR plus a diffusion starting from 5% to eight.5%). Furthermore, we have now agreed to introduce two interim reimbursement instalments of $8.0 million every, payable in December 2022 and December 2023 and a semi-annual money sweep mechanism capturing money balances in extra of $25.0 million or time constitution equal income of our Capesize fleet between $18,000 and $21,000, supplied that such reimbursement obligations, along with all different prepayment obligations to Jelco, is not going to exceed $12 million in any calendar 12 months. These preparations will present for the swift discount of the Jelco debt to the extent the free money flows of the Firm allow.
Furthermore, Seanergy and Jelco have agreed to the settlement of all accrued and unpaid curiosity by way of December 31, 2020 and different charges payable to Jelco in an mixture quantity of roughly $5.6 million, by way of a non-public placement of items consisting of 1 widespread share (or one pre-funded warrant in lieu of 1 widespread share) and one warrant to buy one widespread share for a set worth of $0.70. The issuance of those widespread shares and warrants closed on January 8, 2021. Every unit was issued at a worth of $0.70, in step with the pricing of the Firm’s public providing that closed in August 2020 and represents a 39% premium in comparison with the closing worth of the Firm’s shares on the date of signing of the settlement. The phrases of the warrants and pre-funded warrants are considerably the identical as these of the Class E warrants and pre-funded warrants issued within the Firm’s public providing in August 2020. The Firm has additionally granted an choice to Jelco to transform as much as $3.0 million of principal indebtedness underneath one of many Jelco Loans on the identical phrases and pricing. Seanergy has additionally agreed to amend the conversion worth of the Jelco Notes to $1.20 per share, which represents an roughly 139 % premium in comparison with the closing worth of the Firm’s shares on the date of signing of the settlement. As a part of the transaction, Jelco waived any and all previous breaches or occasions of default underneath the Jelco Loans and Jelco Notes.
The acquisition of shares by Jelco is topic to a standstill endeavor and 9.99% helpful possession blockers, precluding the acquisition of the Firm’s shares, together with by way of the train of warrants or the conversion of the Jelco Notes to the extent that it will lead to Jelco or its associates beneficially proudly owning, together with management over the voting or disposition of, greater than 9.99% of the excellent widespread shares of the Firm after giving impact to the acquisition. The Firm has granted customary registration rights with respect to all shares issued or issuable to Jelco on account of this transaction, together with the shares underlying the Jelco Notes, and has undertaken to file a registration assertion protecting the resale of those shares.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the one pure-play Capesize ship-owner publicly listed within the US. Seanergy supplies marine dry bulk transportation providers by way of a fleet of 11 Capesize vessels with a mean age of about 12 years and mixture cargo carrying capability of roughly 1,926,117 dwt. The Firm is included within the Marshall Islands and has govt places of work in Glyfada, Greece. The Firm’s widespread shares commerce on the Nasdaq Capital Market underneath the image “SHIP”, its Class A warrants underneath “SHIPW” and its Class B warrants underneath “SHIPZ”.
Please go to our firm web site at: www.seanergymaritime.com
Ahead-Wanting Statements
This press launch incorporates forward-looking statements (as outlined in Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended) regarding future occasions. Phrases resembling “could”, “ought to”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such phrases and comparable expressions are supposed to determine forward-looking statements. These statements contain identified and unknown dangers and are based mostly upon plenty of assumptions and estimates, that are inherently topic to important uncertainties and contingencies, lots of that are past the management of the Firm. Precise outcomes could differ materially from these expressed or implied by such forward-looking statements. Components that would trigger precise outcomes to vary materially embody, however are usually not restricted to, the Firm’s working or monetary outcomes; the Firm’s means to proceed as a going concern; the Firm’s liquidity, together with its means to service its indebtedness; aggressive elements available in the market during which the Firm operates; delivery trade tendencies, together with constitution charges, vessel values and elements affecting vessel provide and demand; future, pending or latest acquisitions and tendencies, enterprise technique, areas of attainable enlargement or contraction, and anticipated capital spending or working bills; dangers related to operations outdoors america; dangers related to the size and severity of the continued novel coronavirus (COVID-19) outbreak, together with its results on demand for dry bulk merchandise and the transportation thereof; and different elements listed infrequently within the Firm’s filings with the SEC, its most up-to-date annual report on Type 20-F. The Firm’s filings may be obtained freed from cost on the SEC’s web site at www.sec.gov. Besides to the extent required by regulation, the Firm expressly disclaims any obligations or endeavor to launch publicly any updates or revisions to any forward-looking statements contained herein to mirror any change within the Firm’s expectations with respect thereto or any change in occasions, situations or circumstances on which any assertion is predicated.
For additional data please contact:
Capital Hyperlink, Inc.
Daniela Guerrero
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
