REG - Taylor Maritime Taylor Maritime -TMI - Refinancing and further debt repayment

Taylor MaritimeAnnouncement

27/09/2023 07:00

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RNS Number : 7394N  Taylor Maritime Investments Limited  27 September 2023

27 September 2023

 

Taylor Maritime Investments Limited (the "Company")

 

Refinancing and further debt repayment

 

Positive market momentum since early August

 

Taylor Maritime Investments Limited, the specialist dry bulk shipping company,
today announces that it has entered an agreement to replace its existing
Revolving Credit Facility ("RCF") and Acquisition Facility (in relation to the
Grindrod transaction) with a new RCF with Nordea Bank Abp, Filial i Norge and
Skandinaviska Enskilda Banken AB.

In connection with the refinancing, the Company will make a net loan repayment
of c.$27m, resulting in a reduction of its debt outstanding from $194.9m to
$167.6m.  Based on Fair Market Values as at end of June, the Company's debt
to gross assets ratio is expected to reduce to 25.1%.  Since the Grindrod
transaction closed in December 2022, TMI will have repaid a total of $91m of
debt primarily from asset sale proceeds.

 

The new RCF bears a lower margin compared with both the existing RCF and
Acquisition Facility and matures in March 2027.

 

Market Update

 

There has been positive market movement since early August with a c.74%
increase in the adjusted Baltic Handysize Index Time Charter Average (BHSI
TCA) 1  (#_ftn1) which is currently at a five-month high of $10,204 per day.
The Baltic Supramax Index Time Charter Average (BSI TCA) rose by c.97% over
the same period to reach $14,899 per day, levels not seen since November
2022.  The improvement in rates for the geared dry bulk segment has been
driven, in part, by record corn exports and strong soybean exports from Brazil
while the US Gulf export season is now underway.  There has also been some
congestion caused by Panama Canal transit restrictions which has increased
fleet utilisation, tying up ships for a longer duration.

 

Commenting on the refinancing and market update Edward Buttery, Chief
Executive Officer, said:

"Since the Grindrod transaction, our foremost priority has been to de-lever
the balance sheet.  We've done this through pro-active asset sales while
maintaining a balance of strategic fleet management.  At TMI, 5 ships have
been sold this year so far including 2 sold to our subsidiary, Grindrod, on an
arm's-length basis.  Grindrod has also announced 7 asset sales year to date,
which for them has generated surplus cash as indicated by their proposed
capital reduction, with any initial distribution expected in Q3 of the current
financial year.  The completion of TMI's refinancing is another meaningful
step forward with a net $27m repayment and a reduction in margin.  We'll
continue to reduce debt through select asset sales while keeping an optimal
number of ships operational to capitalise on an improving earnings
environment."

 

ENDS

 

 For further information, please contact:

Taylor Maritime Investments Limited      IR@tminvestments.com (mailto:IR@tminvestments.com)

 Edward Buttery

 Camilla Pierrepont

 Jefferies International Limited          +44 20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 Sanne Fund Services (Guernsey) Limited   +44 1481 737600

 Matt Falla

Notes to Editors

 

About the Company

Taylor Maritime Investments Limited is an internally managed investment
company listed on the Premium Segment of the Official List, its shares trading
on the Main Market of the London Stock Exchange since May 2021.  The
Company specializes in the acquisition and chartering of vessels in the
Handysize and Supra/Ultramax bulk carrier segments of the global shipping
sector.  The Company invests in a diversified portfolio of vessels which are
primarily second-hand.  TMI's fleet portfolio currently numbers 21 vessels in
the geared dry bulk segment.  The ships are employed utilising a variety of
employment/charter strategies.

 

On 20 December, the Company announced it acquired a controlling majority
interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN,
JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and the
Johannesburg Stock Exchange.  Grindrod currently owns 20 geared dry bulk
vessels complementary to the Company's fleet excluding vessels held for
sale.  They are mostly Japanese built, including 13 Handysize vessels and 7
Supra/Ultramax vessels.  Grindrod has seven vessels in its chartered in fleet
with purchase options on three (excluding vessels held for sale).

 

The combined TMI and Grindrod fleet numbers 48 vessels (including chartered in
vessels but excluding vessels held for sale).

 

The Company's target dividend policy is 8 cents p.a. paid on a quarterly
basis, with a targeted total NAV return of 10-12% per annum over the medium to
long-term.

 

The Company has the benefit of an experienced Executive Team led by Edward
Buttery and who previously worked closely together at the Commercial Manager,
Taylor Maritime.  Established in 2014, Taylor Maritime is a privately owned
ship-owning and management business with a seasoned team that includes the
founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong
Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic
Shipping) (listed in Oslo BWEK:NO).  Taylor Maritime's team of industry
professionals are based in Hong Kong, Singapore and London.

 

For more information, please visit www.taylormaritimeinvestments.com
(http://www.taylormaritimeinvestments.com/) .

 

About Geared Vessels

Geared vessels are characterised by their own loading equipment. The Handysize
and Supra/Ultramax market segments are particularly attractive, given the
flexibility, versatility and port accessibility of these vessels which carry
necessity goods - principally food and products related to infrastructure
building - ensuring broad diversification of fleet activity and stability of
earnings through the cycle.

 

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company,
including, among other things, the development of its business, trends in its
operating industry, and future capital expenditures and acquisitions. In light
of these risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur.

 

References to target dividend yields and returns are targets only and not
profit forecasts and there can be no assurance that these will be achieved.

 

LEI: 213800FELXGYTYJBBG50

 1  (#_ftnref1) BHSI index is basis a 38k dwt type (since Jan 2020), therefore
the Company uses adjusted BHSI figures weighted according to average dwt of
the Company's directly owned fleet

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