Grindrod Shipping Holdings Ltd. Announces Sale of Three Tankers – Leopard Moon, Leopard Sun and Breede
31 March 2021 - 7:05AM
Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or "Company" or “it” or “we”), a global
provider of maritime transportation services predominantly in the
drybulk sector, announced two separate transactions with respect to
its fleet.
On March 11, 2021, the Company contracted to
sell the 2013-built medium range tankers Leopard Moon and Leopard
Sun for a gross price of US$21.4 million each. The vessels are
expected to be delivered to their new owners by April 30, 2021,
though we can provide no assurances that the deliveries will take
place by that time or at all.
On March 11, 2021, the Company also contracted
to sell the 2009-built small tanker Breede for a gross price of
US$6.8 million in a separate transaction from the aforementioned
sales. The vessel is expected to be delivered to her new owners by
April 30, 2021, though we can provide no assurances that the
delivery will take place by that time or at all.
The current intention is to utilize the net
proceeds of the sales after settling the debt associated with the
vessels, together with cash on hand, to repay the $25.8 million
remaining outstanding amount on the Senior Secured Credit Facility
with Sankaty maturing in June 2021. Upon completion, the Company
will have completed the refinancing or repayment of all scheduled
2021 debt maturities.
Following these sales, the company’s Core Fleet
will comprise of 15 handysize and 16 supramax/ultramax drybulk
carriers, and one medium range product tanker currently on bareboat
charter-out.
Martyn Wade, the Company’s Chief Executive
Officer, commented:
“We are very pleased to announce the sales of
our last three spot trading product tankers for an aggregate gross
amount of $49.6 million. These sales will enable us to
significantly reduce our debt and interest expense while
positioning the Company to further focus on our core handysize and
supramax/ultramax drybulk segments which are currently enjoying
strong freight market conditions.”
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping owns and operates a
diversified fleet of owned and long-term and short-term
chartered-in drybulk vessels and product tankers. The drybulk
business, which operates under the brand “Island View Shipping”
(“IVS”) includes a fleet of 15 handysize drybulk carriers and 16
supramax/ultramax drybulk carriers. The tanker business, which
operates under the brand “Unicorn Shipping” (“Unicorn”) includes a
fleet (including the above sales) of three medium range tankers and
one small tanker. The Company is based in Singapore, with offices
in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod
Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE
under the ticker “GSH”.
Forward-Looking Statements
The statements in this press release that are
not historical facts may be forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The forward-looking statements in this press
release are based upon various assumptions, including, without
limitation, Grindrod Shipping management's examination of
historical trends, data contained in the Company's records and
other data available from third parties. Although the Company
believes that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those discussed in the forward-looking statements.
These risks and uncertainties include, among others, those
discussed in Grindrod Shipping's public filings with the SEC.
Except as required by law, Grindrod Shipping undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events.
Company Contact:Martyn Wade / Stephen GriffithsCEO
/ CFOGrindrod Shipping Holdings Ltd.200 Cantonment Road, #03-01
SouthpointSingapore, 089763Email:
ir@grindrodshipping.com Website:
www.grinshipping.com |
Investor Relations / Media Contact: Nicolas
Bornozis / Daniela GuerreroCapital Link, Inc. 230 Park Avenue,
Suite 1536 New York, N.Y. 10169 Tel.: (212) 661-7566 Fax: (212)
661-7526 Email: grindrod@capitallink.com |
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