China Eximbank participates in $385.2 million syndicated loan for acquisition of 6 oil tankers (Linked to Project ID#92514)

On June 13, 2018, Gener8 Maritime Subsidiary VII Inc. — a special purpose vehicle that is legally incorporated in the Marshall Islands and a wholly owned subsidiary of Gener8 Maritime Inc. — signed a $385,227,495.00 syndicated loan agreement with a group of Chinese and non-Chinese banks for the acquisition of six oil tankers (Hull Numbers: H1384, H1385, H1355, H1356, H1357, and H1358). The loan carried an interest rate of LIBOR plus a 2% margin and an unspecified maturity length. It was backed by a Sinosure credit insurance policy and a repayment guarantee from Seaways Holding Corporation. Participants in the loan syndicate included China Eximbank, Bank of China, and Citibank, N.A. China Eximbank and Bank of China contributed $192,613,747.48 and $154,090,998, respectively, to the loan syndicate. China Eximbank’s contribution is captured via Project ID#92513. Bank of China’s contribution is captured via Project ID#92514. The borrower was expected to use the loan proceeds to finance several shipbuilding contracts: a contract dated March 21, 2014 (Supplement dated March 21, 2014 and Addendum No.1 dated March 21, 2014) signed by Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS) and Navig8 Crude Tankers Inc. for the construction of Gener8 Strength (Hull Number: H1384) and Gener8 Supreme (Hull Number: H1385); a contract dated December 17, 2013 (Supplement dated December 17, 2013) signed by Navig8 Crude Tankers Inc. and SWS for the construction of Gener8 Success (Hull Number: H1355), Gener8 Andriotis (Hull Number: H1356), Gener8 Chiotis (Hull Number: H1357), and Gener8 Miltiades (Hull Number: H1358). Gener8 Maritime, Inc. announced that it took delivery of the Gener8 Strength from SWS on October 29, 2015. It announced that it took delivery of the Gener8 Supreme from SWS on January 5, 2016. It announced that it took delivery of the Gener8 Andriotis from SWS on May 12, 2016. It announced that it took delivery of the Gener8 Chiotis from SWS on August 18, 2016. It announced that it took delivery of the ‘ECO’ VLCC the Gener8 Miltiades on October 25, 2016 from SWS.

Additional details

1. AidData has estimated the all-in interest rate by adding 2% to average 6-month LIBOR in June 2018 (2.496%). 2. The loan agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1679049/000114420418046689/tv501783_ex10-24.htm. 3. AidData has coded this transaction as a collateralized loan because the loan is referred to as a secured loan and because Nordea Bank was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan. 4. Gener8 Maritime Inc. is legally incorporated in the Marshall Islands.

Number of official sources

1

Number of total sources

6