Grinrod Shipping announces transactions to modernize fleet, increase liquidity
Grindrod Shipping announced a number of transactions for the purpose of modernizing its fleet and increasing its financial flexibility and liquidity. On June 3, the company took delivery of the IVS Phoenix, a Japanese-built eco ultramax drybulk carrier newbuilding. The vessel has been chartered-in from its owner for a minimum period of three years with options to extend for up to two additional years, at Grindrod Shipping's election. Grindrod Shipping and its joint venture partners agreed to the further extension of the termination date of the IVS Bulk joint venture from June 30 to September 30. The company remains in discussions with its joint venture partners regarding strategic alternatives for IVS Bulk. The company sold a portion of the loan it had provided to one of its joint ventures. The sale was at par and provided approximately $7.5M of cash to the company. Grindrod Shipping also recently entered into a sale and leaseback transaction with a Japanese shipowner relating to the 2010-built handysize drybulk carrier, IVS Knot, for a cash amount of $13M. The company will bareboat charter the vessel back for a period of up to 11 years and has the right, but not the obligation, to acquire the vessel from the end of the second year of the charter, with the new owner having the right, but not the obligation, to sell the vessel to the company at the end of the 11 year charter period. The IVS Knot previously constituted part of the security package for our $100M senior secured credit facility and was released from the security package in connection with the closing of the sale and leaseback transaction. At closing, the sale generated approximately $6.3M of cash for the company after settling the debt associated with the vessel. The transaction closed on June 26. The sale of the IVS Kawana was concluded, with the vessel delivering to the new owner on April 30. The company still expects the Umgeni to deliver to the new owner by June 30.