New York-listed handysize liquefied gas carrier owner Navigator Holdings signed a $133.7m secured term loan to finance two newbuild vessels.
The company said its subsidiaries Navigator Parsec L.L.C. and Navigator Pleione L.L.C. entered into a senior secured pre- and post-delivery term loan with ABN AMRO Bank N.V., Crédit Agricole Corporate & Investment Bank and Nordea Bank Abp.
According to Navigator Gas, the loan will be used to finance up to 65% of the borrowers’ payments of the pre-delivery and delivery instalments to Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd. under the contracts signed in November 2024, in connection with the construction of two 48,500 cubic metre capacity liquefied ethylene gas carriers.
The remaining portion of the pre-delivery and delivery instalments for the newbuild vessels will be funded from the company’s available cash resources.
The newbuild vessels are scheduled for delivery in November 2027 and January 2028.
The facility agreement has a post-delivery tenor of five years, is secured by, among other things, mortgages over the newbuild vessels, and amounts outstanding will bear interest on a quarterly basis at SOFR plus 1.50%.
Gary Chapman, chief financial officer, said: “Securing funding for two of our vessels under construction on highly competitive terms from a supportive banking group represents an important milestone as we advance our newbuilding program and continue renewing our fleet.
“The terms achieved will allow us to deliver state-of-the-art vessels that enhance our fleet capabilities, support our customers’ long-term needs, and continue to deliver long-term value to our shareholders.”
Navigator Gas’ fleet consists of 55 semi- or fully-refrigerated liquefied gas carriers, 24 of which are ethylene and ethane capable.
