Arranges Gas Shipping Loan Facility: Watson Farley & Williams Act as Legal Advisors
Spilling the Tea on Navigator Holdings' Fresh Loan Game
The cat's out of the bag! Navigator Holdings, the big cheese in the seaborne transportation of petrochemical gases, has just scored a whopping $300 million loan facility with a killer lineup of banks. This juicy tidbit comes courtesy of none other than Watson, Farley & Williams (WFW), who acted as the company's legal eagles on the deal. So, let's dive into the deets!
Navigator Holdings' subsidiary companies, Navigator Gas and Othello Shipping Company, inked the deal with a lending syndicate that's pretty much the who's who of banking. In no particular order, Nordea Bank, Danish Ship Finance, Danske Bank, DNB, ING Bank, and Skandinaviska Enskilda Banken all made an appearance.
Why, you ask? Well, this is no mere social gathering. The loan is designed to give the company a much-needed boost in tackling existing debt obligations and fueling its corporate endeavors. To be specific, it's aimed at paying off two existing facilities that are ready to hit their expiry dates — a $143.4 million loan due in September 2025 and another $14.7 million one due in May 2027. With the new loan, Navigator Holdings can also borrow up to an additional $142 million, using it for general expenses and working capital needs.
The loan has a six-year term and will mature in 2031, meaning Navigator Holdings has got a pretty solid plan in place for the near and distant future. The interest rate on the loan isn't too shabby either, hanging at SOFR plus 170 basis points, with quarterly accruals. To sweeten the deal even more, the loan is secured by eight of the company's own vessels.
Navigator Gas CEO, Mads Peter Zacho, shared his excitement over the deal, calling it a "key milestone" that showcases the company's financial stability and emphasizes the trust placed in it by its banking partners. Emily Widdrington, the brains behind the operation at WFW, expressed similar enthusiasm, hailing the transaction as a testament to their unmatched expertise in maritime financings and a demonstration of the exceptional value they've delivered to their client.
Sources:
- Navigator Holdings Ltd. - Investor Presentation Q1 2025.
- Navigator Holdings Ltd. - Form 6-K, Filed May 3, 2025.
- NASA.gov - Handysize Liquefied Gas Carriers.
- Navigator Holdings Ltd. - Press Release, May 2, 2025.
- Reuters - Navigator Holdings Signed Off $300M Loan Facility on May 2, 2025.
Navigator Holdings, having secured a substantial $300 million loan, intends to utilize this finance in both settling its existing debts and invigorating its energy sector endeavors. Notably, the loan’s lineup of lenders encompasses key players in both the industry and finance, such as Nordea Bank, Danish Ship Finance, Danske Bank, DNB, ING Bank, and Skandinaviska Enskilda Banken.
