Boost for Ardmores Debt Financing

Ardmore Ardmore Shipping Corporation has secured an additional debt refinancing which brings the total amount of debt refinanced since the start of 2016 to USD 408 million. Namely, Ardmore has received senior loan commitments of USD 64 million from Credit Agricole Corporate and Investment Bank, comprising USD 39 million to refinance two existing vessels, plus a USD 25 million commitment for additional financing. Together with the facilities completed in mid-January, Ardmore said that its refinancing efforts have now decreased its interest expense by approximately USD 2.2 million in 2016 and improved the companys surplus cash flow by approximately USD 6.7 million over the same period. This refinancing further strengthens the companys financial flexibility by extending and aligning debt maturities to 2022, providing additional borrowing capacity to support accretive growth, and lowering the companys cost of debt, Ardmore said. As a central component of that approach, we pay out 60% of earnings from continuing operations each quarter in the form of a dividend. By linking the dividend directly to our earnings, we have increased our fourth quarter dividend by 30%, and increased our total dividend payment by 120% since introducing the policy in third quarter 2015. This dividend policy enables investors to participate directly in our earnings as we capitalize on our fully delivered 24-vessel fleet and benefit from an MR market that we expect to remain strong in 2016 and beyond, Anthony Gurnee, Ardmores Chief Executive Officer, commented, adding that the company plans to look for opportunities in its share repurchase program. Ardmore owns and operates a fleet of mid-size product and chemical tankers ranging from 17,500 to 50,300 deadweight tonnes.