Narrative
Full Description
Project narrative
On February 13, 2012, China Development Bank (CDB) entered into a syndicated loan agreement with HSH Nordbank AG (HSHN) as another mandated lead lender to the borrower, Dryships Inc., to finance the construction costs of three vessels made by Chinese shipbuilding companies. The total amount of syndicated loan was up to $87,653,740 USD and the commitment of each bank was 50%; thus, CDB's commitment was $43,826,870 USD. The facility was available in three tranches: (1) Tranche 1 of $20,491,000 for Hull number 1638A, a 76000 dwt bulker made by Hudong-Zonghua Yard in China. It was then named Raraka and was delivered in March 2012; (2) Tranche 2 of $33,581,370 for Hull number 1241, a 176000 dwt bulk carrier made by Shanghai Jiangnan-Changxing Yard in China; and (3) Tranche 3 of $33,581,370 for Hull number 1242, a 176000 dwt bulk carrier made by Shanghai Jiangnan-Changxing Yard in China. For the repayment of the loan, tranches 1-3 were to be repaid in consecutive quarterly repayment installments (Tranche 1: USD 320,175 each, Tranche 2: USD 524,710 each, Tranche 3: USD 524,710 each) plus a balloon payment payable together with the last repayment installment. The first repayment installment became due and payable three months after the drawdown date of each tranche. The final maturity date for tranche 1-3 was up to 8 years from drawdown of tranche 1 and not later than March 31, 2020. The interest rate was calculated as the margin (3.35% per annum) and LIBOR screen rate (based on 2012 6-month average USD LIBOR 0.757%), summed at 4.107%. The financing was available in three tranches, and Tranche 2 of $33,581,370 for Hull number 1241 and Tranche 3 of $33,581,370 for Hull number 1242 were cancelled in March 2013 after the two vessels were sold. Dryships Inc. has drawn down $19,065,000 related to the vessel Raraka (ex H1638) for tranche 1 of the loan, but the disbursements for tranches 2 and 3 before their cancellation are unknown. The originally-committed amount that was subsequently cancelled is captured via Record ID#63497.
Staff comments
1. The transaction amount is coded as half of the disbursed amount, $19,065,000 USD, because the ratio of the syndicated loan is 50% from each participating bank. Only the drawn down amount for tranche 1 is recorded, as the drawn down amounts for tranches 2 and 3 are unknown.