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Safe Bulkers, Inc. refinances US$70 million

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Dry Bulk,

Safe Bulkers, Inc., an international provider of marine dry bulk transportation services, has announced that the Company has entered into a credit facility of US$70.0 million with a five-year tenor, comprising of a term loan tranche of US$30.0 million and a reducing revolving credit facility tranche providing for a draw down capacity of up to US$40.0 million, with respect to seven vessels. The agreement contains financial covenants in line with the exist-ing loan and credit facilities of the Company.

The proceeds from the credit facility will refinance loan facilities of US$64.3 million, in respect of eight vessels maturing in 2023, seven of which will secure the new credit facility and one of which will remain debt free. The company does not intend to utilise the full capacity of the revolving credit facility tranche at this time.

The refinancing transaction was evaluated and approved by the Board of Directors of the Company, excluding an independent member of the Board of the Company, who serves as the Chief Executive Officer of the financial institution that is the lender in the transaction.

As of 31 March 2021, the company had US$607.6 million of outstanding debt. Following voluntary debt prepayments and debt payments in relation to vessels sales or debt refinancing in the aggregate amount of US$106.9 million, scheduled principal payments of US$4.5 million and loan drawdown of US$30.5 million, the company had as of 18 June 2021, outstanding debt of US$526.7 million. On a pro-forma basis following this refinancing and assuming no draw down under the revolving credit facility, Safe Bulkers will have outstanding debt of US$500.2 million and availability of US$67.5 mil-ion under its revolving credit facilities.

Dr. Loukas Barmparis, President of the Company, said: “We continue our strategy of gradually deleveraging our Company and increasing the revolving credit facility component of our debt, which provides a greater flexibility and lower overall interest costs, targeting a lower leverage as we continue to renew our fleet with modern, energy efficient new-build tonnage or second-hand tonnage from leading Japanese yards that will replace older or Chinese-built vessels.”

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