Ultrapetrol Arranges $61.3M Loan Deal with DVB
Ultrapetrol (Bahamas) Limited said that it has entered into a $61.3 million senior secured term loan agreement with DVB Bank AG. The agreement provides for a ten-year term loan facility, which Ultrapetrol will use primarily to refinance two Platform Supply Vessels it took delivery of in 2005, the "UP Esmeralda" and "UP Safira," and two Platform Supply Vessels it took delivery of in 2006, the "UP Agua-Marinha" and the "UP Topazio."
The new monies of approximately $35.6 million generated by the refinancing will be used towards funding Ultrapetrol's 2007 capital expenditure and fleet expansion plans.
"We are very pleased to have achieved favorable refinancing terms that reduce the interest margin, lengthen the maturity and lower fees," said Felipe Menendez Ross, Chief Executive Officer of Ultrapetrol. "This facility will allow us to fund some of our more immediate capital expenditure plans, which are designed to help us achieve our long-term growth objectives. We continue to see strong demand across all of our business segments, and we are investing judiciously in those areas where we expect the most attractive returns."
Ultrapetrol is an industrial transportation company serving the marine transportation needs of its clients in the markets on which it focuses. It serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market and the leisure passenger cruise market, with its extensive and diverse fleet of vessels. These include river barges and pushboats, platform supply vessels, tankers, oil-bulk-ore vessels and passenger ships.
DVB Bank AG, based in Frankfurt/Main, is an international advisory bank and finance house that specializes in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, Land Transport and Transport Infrastructure. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen, Piraeus, and Curacao.