Stolt-Nielsen S.A. announced yesterday that it has received commitments in excess of the $625 million required for the financing of eight 43,000 dwt K-43 class parcel tankers currently on order from SLS Shipbuilding Co., Ltd. in Korea.
Stolt-Nielsen S.A announced yesterday that it has received commitments in excess of the $625 million required for the financing of eight 43,000 dwt K-43 class parcel tankers currently on order from SLS Shipbuilding Co., Ltd. in Korea.
The approximately 16-year pre- and post- delivery financing covers 80% of the cost of the ships, and will benefit from 95% comprehensive insurance from the Korean Export Insurance Corporation (KEIC). The financing was arranged by joint bookrunners Citi (as coordinator), Deutsche Bank and Fortis, and represents the largest financing ever undertaken by Stolt-Nielsen.
Commenting on the financing, Mr. Jan Chr. Engelhardtsen, Chief Financial Officer of SNSA, said, "We are pleased to have arranged this loan transaction in an exceptionally difficult credit market worldwide. This KEIC-guaranteed financing is a testament to SNSA's excellent credit standing and strong balance sheet."
This new facility completes SNSA's existing newbuilding financing requirements, which total $1.24 billion.
Stolt-Nielsen currently operates a fleet of 158 sophisticated parcel tankers, product tankers, river tankers and barges, ranging in size from approximately 1,000 to 44,000 dwt. The K-43 class acquisitions represent a cornerstone of the Company's newbuilding strategy, enabling Stolt-Nielsen to continue to meet the growing demands of its sophisticated global client base.