Navig8 Chemical Snatches Financing for New Tanker

Navig8 Chemical Tankers Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, has entered into a USD 55 million secured loan facility to finance the companys first of two 25,000 dwt newbuilds. The stainless steel chemical tanker newbuildings are currently under construction at Japan’s shipyard Kitanihon Shipbuilding Co. Ltd. Navig8 Chemical Tankers said that the loan facility covers 65% of the contract price of the vessels, and has been provided by Credit Suisse AG. The company ordered the batch of six stainless steel chemical tankers in January 2014. Featuring a length of 159 meter and a width of 25 meters, the new tankers are scheduled to join Navig8 Chemical Tankers fleet in 2016 and 2017. Last week, the chemical shipping firm signed sale and leaseback agreements with CMB Financial Leasing Co. Ltd. (CMB) for three of its IMO2 37,000 dwt Interline coated tankers. The expected net proceeds of USD 91.2 million from the transaction will be utilized to repay existing loans used to finance the vessels’ newbuilding contracts under the multi-bank loan facility announced by the company on February 3, 2015, Navig8 Chemical Tankers earlier said. Under the sale and leaseback agreements, the vessels will be sold and delivered to CMB.