Stena/Concordia Negotiate Major Financial Package

Following last year’s bout of expansion, the Stena Group has negotiated a major refinancing package with a syndicate of international banks. The total value of the deal is $166.95m and includes loans worth $116.85m for six VLCCs of between 269,000 and 273,000 dwt. The ships involved in the deal consist of the Stena Concept, Congress, Convoy, Contender, Continent and Constellation, all bought last year from the Ludvig Group. The remainder of the package consists of $47.4m relating to the 458,000 dwt ULCCs Stena King and Stena Queen, both of which are on charter to Vela Maritime at the rate of $29,000 per day. A further $2.6m has been provided in working capital.

Commenting on the deal, Concordia finance director Mats Bergelund told Marine Money, “The new loans will be mainly used to replace interim or bridging finance used for the purchase of the Ludvig vessels last year.” The lead bank in the syndicate was Barclays, which provided $26.737m. The largest participants in financial terms, however, were the UK branch of Morgan Guaranty Trust, and the Swedish institutions, Scandinaviska Enskilda Banken and Svenska Handelsbanken, which each contributed $41.737m. The balance of $15m was provided by Deutsche Schiffsbank. The arrangement fees for the transaction were $800,000.

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