New York, NY – Holland & Knight represented International Seaways, Inc., one of the world’s largest crude oil and petroleum product tanker companies, in a $390 million committed secured loan transaction, with a $100 million uncommitted accordion. The transaction comprised a five-year $300 million senior secured loan facility, a five-year $40 million revolving credit facility, a two-and-a-half-year $50 million senior secured term loan credit facility and an uncommitted $100 million incremental loan credit facility.
The transaction funding on January 28 allowed International Seaways to recapitalize its debt structure by prepaying secured facilities, freeing up assets, and buying back its unsecured high-yield notes, and reduced its annual interest expense by approximately $15 million. International Seaways employed a ground-breaking sustainability-linked pricing mechanism, the first of its kind for a NYSE-listed ship owner and operator, consistent with the de-carbonization trajectory in the Poseidon Principles, the global framework by which financial institutions can assess the climate alignment of their ship finance portfolios.
Nordea Bank Abp, New York Branch, ABN AMRO Capital USA LLC, Crédit Agricole Corporate & Investment Bank, DNB Capital LLC and Skandinaviska Enskilda Banken AB, or their respective affiliates, acted as mandated lead arrangers and bookrunners, and BNP Paribas and Danish Ship Finance A/S were lead arrangers. Nordea is the administrative agent, collateral agent and security trustee under the credit agreement, and ABN acts as sustainability coordinator.
