MPC Container Ships ASA Secures New Financing Facility, Accepts Sale of Six Vessels, Provides Charter Update
Posted: October 20, 2021 at 1:48 am EDT|Update: 3 hours ago
Oslo, Norway, 20 October 2021 / PRNewswire / – MPC Container Ships ASA (“MPCC” or the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce the following measures which will increase the flexibility of the Company’s balance sheet in order to execute the Group’s plan to start returning capital to investors. These changes are in line with the Company’s forecasts in previous quarters:
- New bank facility of $ 180 million with HCOB at LIBOR + 335 bps
- Over 30 unencumbered vessels after closure
- Sale of six vessels between 1,000 and 1,500 TEUs agreed in total $ 135 million
- Seven additional multi-year charter agreements concluded in a historically strong charter market
- EBITDA book of July 1, 2021 currently above $ 700 million
New credit facility
The Company has agreed to a $ 180 million five-year senior secured credit facility (the “Facility”) with Hamburg Commercial Bank (“HCOB”) on attractive terms. The installation consists of a $ 130 million term loan and a revolving credit facility of $ 50 million.
Constantin Baack, CEO of MPC Container Ships ASA commented: “We have implemented various measures in order to become a low leverage, high dividend stock. The new financing with HCOB is another important step in optimizing the balance sheet structure, reducing our debt costs and extending debt maturities until 2026. In addition, it creates great flexibility and option based on more than 30 unencumbered vessels following refinancing. We appreciate the agility, professionalism and support of HCOB in organizing the facility, which places MPCC in a position to achieve business goals. “
Sale of ships
In order to optimize the composition of the fleet and take advantage of historically high container ship asset prices, the Group has undertaken to sell six smaller vessels with an average size of 1,200 TEUs for a total of $ 135 million, which implies a significant premium compared to the current price of the MPCC share. MPCC’s total fleet will consist of 68 vessels once the six vessels have been handed over to their new owners.
During the fourth quarter of 2021, the Company intends to use the Facility, together with a portion of the proceeds from the agreed vessel sales to refinance the existing acquisition financing of DNB, as well as the outstanding amount. $ 204 million bond financing. As a result, the previous acquisition financing with DNB and the outstanding senior covered bonds will be repaid in full and a significant number of vessels owned by the Company will subsequently be released.
Well placed to return capital to shareholders
“Following our prudent and rational capital allocation strategy, these measures are important steps for MPCC to move from a growth phase to a very strong value proposition of significant cash generation, good visibility of profits with a strong dividend capacity and a low risk profile. very happy that the Company is now well positioned to return capital to its shareholders ”, CEO Constantin Baack added.
Following the August 19 second quarter report, the company has fixed seven additional vessels with long periods and attractive rates. The EBITDA backlog subsequently increased to exceed $ 700 million, demonstrating a still strong charter market.
Once executed, the Group’s new financing structure will allow great flexibility in the allocation of capital and a solid basis for the implementation of a sustainable dividend policy. Following the sequencing of the redemption and the successful handing over of the vessels sold in the fourth quarter of 2021, the Company plans to enter a new era of return of capital to shareholders from the first quarter of 2022 by distributing up to 75% of the net profit under form of dividends and / or shares. redemptions.
This press release does not constitute a notice of voluntary early redemption of the outstanding bonds, which will be issued in accordance with the terms of the outstanding bonds.
For more details on the Installation, vessel sales and for an operational update on the Company, please refer to the attached presentation. A call to investors will be organized on Wednesday October 20 at 10:00 am CEST. Please see below for call details. The Facility is subject to customary documentation conditions and is expected to be completed by the end of October 2021.
This information is considered inside information in accordance with the EU Market Abuse Regulation and is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Act.
This stock market announcement was published by Andréas Nguyen, Investor Relations at MPC Container Ships ASA, on 20 October 2021 To 7:00 a.m. CEST.
Call for investors and webcast:
The Company will host a webcast for the investor call starting Wednesday 20 October 2021 at 10:00 a.m. CEST. The presentation will be available on the Company’s webpage (https://www.mpc-container.com/investors-and-media/press-releases/). There will be a question-and-answer session after the presentation.
The event is broadcast. It is recommended to listen through your computer speakers. Please note that for best viewing it is recommended that you do not use a VPN, but rather connect directly to the internet. Please disable pop-up blockers in order to view the entire content.
The live webcast can be accessed via the following link:
Participants can also log in to the winnings call using the login details below:
Norwegian local phone number (Oslo): +47 23 96 02 64
Local call in the United States (new York): +1 (631) 510-7495
International telephone number / paying participant: +44 (0) 2071 928000
Conference number: 2055597
Further information and contact:
For more information, please contact [email protected]
About MPC Container Ships ASA:
MPC Container Ships ASA (ticker code “MPCC”) is a leading supplier of container tonnage with a focus on the under 5,000 TEU refueling segment. Its main activity is to own and operate a portfolio of container ships serving intra-regional trade routes on fixed rate charters. The Company is registered and has its registered office at Oslo, Norway. For more information, please see our website: www.mpc-container.com.
This announcement includes forward-looking statements. Such statements are generally not historical in nature and specifically include statements about plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made on the basis of management’s current plans, expectations, assumptions and beliefs regarding future events affecting the Company and therefore involve a number of risks, uncertainties and assumptions that could result in that actual results differ materially from those expressed or implied in forward-looking statements. statements, which speak only as of the date of this press release. Therefore, no forward-looking statement can be guaranteed. When reviewing these forward-looking statements, you should keep in mind the risks described from time to time in the regulatory documents and periodic reports of the Company. The Company assumes no obligation to update forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unforeseen events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. In addition, the Company cannot assess the impact of each of these factors on its business or the extent to which one factor, or a combination of factors, may cause actual results to differ materially from those contained in a forward-looking statement.
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