Narrative
Full Description
Project narrative
On April 11, 2013, the Export-Import Bank of China and two non-Chinese banks entered into a syndicated loan agreement worth $120 million USD with Navigator Atlas L.L.C., Navigator Europa L.L.C., Navigator Oberon L.L.C., and Navigator Triton L.L.C. All of the borrowers are incorporated under the laws of the Republic of the Marshall Islands and they are special purpose vehicles (SPVs) and wholly-owned subsidiaries of UK-based private company Navigator Holdings Company (Navigator Holdings Plc). The loan is guaranteed by parent companies Navigator Holdings LTD and Navigator Gas L.L.C. China Eximbank contributed $60 million USD to the syndicated loan, while other lenders, Crédit Agricole Corporate Investment Bank, HSH Nordbank AG, and NIBC Bank N.V., committed $20 million USD each. The interest rate on each advance is the aggregate of margin (3.50% per annum), LIBOR, and mandatory cost. The term loan facility is a delayed draw facility with the last availability period ending June 8, 2015 and a term of six years. The aggregate market value of the collateral vessels must be no less than 135% of the aggregate outstanding borrowings under the facility. The principal will be repaid in 24 equal quarterly installments based on 50% of each amount advanced, with a final installment of the remaining 50% of each advance. The first repayment is due three months after the day on which an advance is made, and the final repayment is due in 6 years after the first repayment. The loan intends to finance the acquisition of four vessels from the Chinese builder, Jiangnan Shipyard (Group) Co., Ltd. On January 27, 2015, the loan was refinanced by other banks. Jiangnan Shipyard (Group) Co., Ltd. entered into shipbuilding contracts: one for Hull H2530 with Navigator Atlas L.L.C. signed on April 25, 2012; one for Hull H2531 with Navigator Europa L.L.C. signed on April 25, 2012; one for Hull H2532 with Navigator Oberon L.L.C. signed on July 25, 2012; and one for Hull H2533 with Navigator Triton L.L.C. signed on July 25, 2012. All of these shipbuilding contracts are at the price of $49,850,000 USD. On January 27, 2015, the recipients entered into a secured term loan facility with Credit Agricole Corporate and Investment Bank as an agent, as well as HSH Nordbank AG and NIBC Bank N.V. to refinance the $120 million secured term loan facility and to provide financing for an additional five existing new buildings. Following the delivery of Navigator Ceto in January 2016 and Navigator Copernico in April 2016, the January 2015 facility was fully drawn; therefore the project status is completed.
Staff comments
1. Navigator Holdings Company (Navigator Holdings Plc), is a holding company, which was founded in 1997 with headquarters in the United Kingdom. In its first annual report published on February 1, 2001, Navigators Group Inc. self-described as 'an international specialty insurance holding company with insurance company operations, underwriting management companies.' It is the parent company of subsidiaries such as Navigator Gas L.L.C, Navigator Europa L.L.C., is the holding company or parent company of subsidiary Navigator gas shipping. Navigator Holdings Ltd. is sold on the New York stock exchange as (NYSE: NVGS). 2. The loan agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1581804/000119312513402707/d563678dex106.htm. AND https://www.dropbox.com/scl/fi/55wqx6l63f6n061bzgbyj/EX-10.6.pdf?rlkey=2qzilbvs0kgjv5jkadgrr6hrh&st=paf4ndg6&dl=0 3. AidData has estimated the all-in interest rate by adding 3.5% to average 6-month LIBOR in April 2013 (0.436%), or 3.936%. 4. The loan is secured with "(a) each Guarantee; (b) the Mortgages over the Ships; (c) the General Assignments in relation to the Ships; (d) the Share Security; (e) any Charter Assignment in relation to a Ship; (f) any Manager’s Undertaking in relation to a Ship if required under clause 23.3 (Manager); (g) any Reinsurance Assignment in relation to a Ship if required under clause 25.23 (Reinsurances); (h) the Hedging Contract Security; (i) the Account Security; and (j) any other document as may be executed to guarantee and/or secure any amounts owing to the Finance Parties under this Agreement or any other Finance Document." The "Account Security [...] means, in relation to an Account, a deed, pledge or other instrument executed by the Borrowers in favour of the Original Lenders, the Hedging Providers and the Security Agent and counter-signed by the Account Bank in the agreed form conferring a Security Interest over that Account."