Okeanis Eco Tankers Corp. – New Financings Update

ATHENS, Greece, May 21, 2024 (GLOBE NEWSWIRE) -- Okeanis Eco Tankers Corp. (“we”, the “Company”, “OET” or “Okeanis”) (NYSE:ECO / OSE:OET) is pleased to announce the following financings update relating to its fleet.

On May 20, 2024, we entered into a new $60.0 million senior secured credit facility to refinance the Company’s existing facility secured over the VLCC vessel Nissos Kythnos and for general corporate purposes (the “Nissos Kythnos New Facility”). The Nissos Kythnos New Facility is provided by Danish Ship Finance A/S and the transaction is expected to close in May 2024. It is priced at 140 basis points over the applicable Term SOFR, until December 2026. Thereafter, a new applicable margin will be mutually agreed between the parties, for the remaining duration of the facility, which matures in six years. If the parties do not agree to a new applicable margin, the Company will have the ability to prepay the facility at no additional cost. The facility will be repaid in quarterly instalments of approximately $1.041 million each, together with a balloon installment of approximately $35.024 million payable at maturity, is secured by, among other things, security over the Nissos Kythnos, and is guaranteed by the Company. The facility also includes a sustainability linked margin adjustment provision, starting in 2025, whereby the applicable margin may decrease or increase by 5 basis points per year, subject to the Company meeting certain sustainability linked targets.  

On May 21, 2024, we entered into a supplemental agreement to our senior secured credit facility currently financing the VLCC vessel Nissos Donoussa (the “Nissos Donoussa Supplemental Agreement”). The Nissos Donoussa Supplemental Agreement, which is expected to become effective in May 2024, provides for a reduction of the margin to 165 basis points over the applicable Term SOFR, through the duration of the facility. No other material terms of the facility have been supplemented or amended.

Iraklis Sbarounis, CFO of the Company, commented:

“We continue our focus in improving our capital structure and are very pleased to announce these two transactions, which reduce further our cost of debt. We are currently observing a very competitive financing market landscape for us, a testament to the positioning of the Company and our strong relationships with our financiers. We are delighted to commence partnerships with new ones and at the same time are proud and thankful to be able to benefit from ones we and our major shareholder have established and cultivated for many years. These transactions reduce our applicable pricing by approximately 100 basis points on our two VLCC vessels, and continue the momentum from our series of accretive refinancings and financing amendments over the last 10 months. We actively continue working on sourcing debt capital at favorable and value-creating terms to finance the purchase option of our Suezmax Poliegos under its current finance lease this summer, and target to provide further updates in due course.”