China Eximbank contributes $28.8 million to loan to finance acquisition of LR2 Product Tanker Hull #15121049 (Linked to Record ID#94652, #94654, #94655, #94656)

Project narrative

On July 8, 2016, China Eximbank and VesselCo 9 Pte. Ltd. — a Singaporean subsidiary of TORM A/S (a Danish shipping company) — entered into an agreement to provide a $115.2 million secured loan facility to finance the purchase of four LR2 Product Tankers Ships. The facility authorizes borrowings of up to $29 million per vessel to finance the purchase price of four LR2 product tanker newbuildings from GSI, or the LR2 Product Tanker Newbuildings. The borrowing terms of the facility include a 12 year maturity, with the final repayment date being either November 30, 2030 or 12 years after the delivery of the relevant LR2 Product Tanker, whichever is earlier. The facility bears interest at a rate of LIBOR plus 225 basis points. Borrowings under each of the four vessel tranches are repayable in 48 equal consecutive quarterly installments and a balloon payment on the final repayment date (November 26, 2030). The facility is guaranteed by TORM A/S and TORM plc, a Danish shipping company that owns and operates product tankers and the owners of VesselCo 9 Pte. Ltd. The facility is secured by (i.e. collateralized against) a first priority fleet mortgage over each of the LR2 Product Tanker Newbuildings, first priority share security in the shares of our vessel-owning subsidiary, account security over the earnings accounts of the borrower, charter assignments and charterer’s assignments and undertakings in favor of the security agent relating to the LR2 Product Tanker Newbuildings. The loan’s principal amount outstanding as of December 31, 2019 was $104 million. In July 2021, Torm A/S repaid debt on two of the four vessels financed by the $115.2 million China Eximbank facility in conjunction with a sale and leaseback transaction. Two vessels were remaining under the facility as from December 31, 2021. The China Eximbank facility is divided into four tranches, each covering up to $28.8 million for the construction of an individual LR2 Product Tanker ship. Each ship is financed by its own tranche, all bearing the same terms, with the hull numbers of the ships as follows: 15121049 (captured via Record ID#94653), 15121050 (captured via Record ID#94654), 15121051 (captured via Record ID#94655), 15121052 (captured via Record ID#94656). The master loan facility is captured via Record ID#94652.