TIDMTMIP TIDMTMI
RNS Number : 7394N
Taylor Maritime Investments Limited
27 September 2023
27 September 2023
Taylor Maritime Investments Limited (the "Company")
Refinancing and further debt repayment
Positive market momentum since early August
Taylor Maritime Investments Limited, the specialist dry bulk
shipping company, today announces that it has entered an agreement
to replace its existing Revolving Credit Facility ("RCF") and
Acquisition Facility (in relation to the Grindrod transaction) with
a new RCF with Nordea Bank Abp, Filial i Norge and Skandinaviska
Enskilda Banken AB.
In connection with the refinancing, the Company will make a net
loan repayment of c.$27m, resulting in a reduction of its debt
outstanding from $194.9m to $167.6m. Based on Fair Market Values as
at end of June, the Company's debt to gross assets ratio is
expected to reduce to 25.1%. Since the Grindrod transaction closed
in December 2022, TMI will have repaid a total of $91m of debt
primarily from asset sale proceeds.
The new RCF bears a lower margin compared with both the existing
RCF and Acquisition Facility and matures in March 2027.
Market Update
There has been positive market movement since early August with
a c.74% increase in the adjusted Baltic Handysize Index Time
Charter Average (BHSI TCA) [1] which is currently at a five-month
high of $10,204 per day. The Baltic Supramax Index Time Charter
Average (BSI TCA) rose by c.97% over the same period to reach
$14,899 per day, levels not seen since November 2022. The
improvement in rates for the geared dry bulk segment has been
driven, in part, by record corn exports and strong soybean exports
from Brazil while the US Gulf export season is now underway. There
has also been some congestion caused by Panama Canal transit
restrictions which has increased fleet utilisation, tying up ships
for a longer duration.
Commenting on the refinancing and market update Edward Buttery,
Chief Executive Officer, said:
"Since the Grindrod transaction, our foremost priority has been
to de-lever the balance sheet. We've done this through pro-active
asset sales while maintaining a balance of strategic fleet
management. At TMI, 5 ships have been sold this year so far
including 2 sold to our subsidiary, Grindrod, on an arm's-length
basis. Grindrod has also announced 7 asset sales year to date,
which for them has generated surplus cash as indicated by their
proposed capital reduction, with any initial distribution expected
in Q3 of the current financial year. The completion of TMI's
refinancing is another meaningful step forward with a net $27m
repayment and a reduction in margin. We'll continue to reduce debt
through select asset sales while keeping an optimal number of ships
operational to capitalise on an improving earnings
environment."
ENDS
For further information, please contact:
Taylor Maritime Investments IR@tminvestments.com
Limited
Edward Buttery
Camilla Pierrepont
Jefferies International Limited
Stuart Klein
Gaudi Le Roux +44 20 7029 8000
Sanne Fund Services (Guernsey)
Limited
Matt Falla +44 1481 737600
Notes to Editors
About the Company
Taylor Maritime Investments Limited is an internally managed
investment company listed on the Premium Segment of the Official
List, its shares trading on the Main Market of the London Stock
Exchange since May 2021. The Company specializes in the acquisition
and chartering of vessels in the Handysize and Supra/Ultramax bulk
carrier segments of the global shipping sector. The Company invests
in a diversified portfolio of vessels which are primarily
second-hand. TMI's fleet portfolio currently numbers 21 vessels in
the geared dry bulk segment. The ships are employed utilising a
variety of employment/charter strategies.
On 20 December, the Company announced it acquired a controlling
majority interest in Grindrod Shipping Holdings Ltd ("Grindrod")
(NASDAQ:GRIN, JSE:GSH), a Singapore incorporated, dual listed
company on NASDAQ and the Johannesburg Stock Exchange. Grindrod
currently owns 20 geared dry bulk vessels complementary to the
Company's fleet excluding vessels held for sale. They are mostly
Japanese built, including 13 Handysize vessels and 7 Supra/Ultramax
vessels. Grindrod has seven vessels in its chartered in fleet with
purchase options on three (excluding vessels held for sale).
The combined TMI and Grindrod fleet numbers 48 vessels
(including chartered in vessels but excluding vessels held for
sale).
The Company's target dividend policy is 8 cents p.a. paid on a
quarterly basis, with a targeted total NAV return of 10-12% per
annum over the medium to long-term.
The Company has the benefit of an experienced Executive Team led
by Edward Buttery and who previously worked closely together at the
Commercial Manager, Taylor Maritime. Established in 2014, Taylor
Maritime is a privately owned ship-owning and management business
with a seasoned team that includes the founders of dry bulk
shipping company Pacific Basin Shipping (listed in Hong Kong
2343.HK) and gas shipping company BW Epic Kosan (formerly Epic
Shipping) (listed in Oslo BWEK:NO). Taylor Maritime's team of
industry professionals are based in Hong Kong, Singapore and
London.
For more information, please visit
www.taylormaritimeinvestments.com .
About Geared Vessels
Geared vessels are characterised by their own loading equipment.
The Handysize and Supra/Ultramax market segments are particularly
attractive, given the flexibility, versatility and port
accessibility of these vessels which carry necessity goods -
principally food and products related to infrastructure building -
ensuring broad diversification of fleet activity and stability of
earnings through the cycle.
IMPORTANT NOTICE
The information in this announcement may include forward-looking
statements, which are based on the current expectations and
projections about future events and in certain cases can be
identified by the use of terms such as "may", "will", "should",
"expect", "anticipate", "project", "estimate", "intend",
"continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking
statements are subject to risks, uncertainties and assumptions
about the Company, including, among other things, the development
of its business, trends in its operating industry, and future
capital expenditures and acquisitions. In light of these risks,
uncertainties and assumptions, the events in the forward-looking
statements may not occur.
References to target dividend yields and returns are targets
only and not profit forecasts and there can be no assurance that
these will be achieved.
LEI: 213800FELXGYTYJBBG50
[1] BHSI index is basis a 38k dwt type (since Jan 2020),
therefore the Company uses adjusted BHSI figures weighted according
to average dwt of the Company's directly owned fleet
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END
MSCSEAFMMEDSEDU
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September 27, 2023 02:00 ET (06:00 GMT)
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