Navigator fixes $300m of new financing
Navigator Holdings Secures $300M Financing Deal
Navigator Holdings, a prominent player in the liquefied gas shipping industry, has successfully arranged $300 million in new financing aimed at addressing its existing debt obligations. The company, led by CEO Mads Peter Zacho, announced that its subsidiaries, Navigator Gas and Othello Shipping, have entered into a financing agreement with a consortium of banks, including Nordea Bank and Danske Bank. This strategic move is designed to bolster Navigator’s financial stability amid ongoing global economic challenges.
Details of the Financing Agreement
The newly secured financing consists of a term loan and a revolving credit facility, backed by eight of Navigator’s vessels. This agreement will allow the company to repay a five-year secured loan of $143.4 million, which is set to mature in September 2025, along with an additional loan of $14.7 million due in May 2027. The remaining funds from the financing will be allocated for general corporate purposes and working capital, enhancing Navigator’s operational flexibility.
The loan is structured to mature in 2031 and will incur interest at a rate of SOFR plus 170 basis points, payable quarterly. Zacho emphasized the significance of this facility agreement, describing it as a pivotal milestone for Navigator Gas in 2025. He noted that the arrangement not only extends the company’s debt maturities but also reflects the strong confidence that banking partners have in Navigator’s financial prospects, particularly in a climate of economic uncertainty.
As the leading operator in the handysize LPG carrier segment, Navigator Holdings boasts a fleet of nearly 60 semi- and fully-refrigerated liquefied gas carriers, with a substantial portion capable of transporting ethylene and ethane. This financing initiative positions the company to continue its growth trajectory while maintaining a robust financial foundation.
