International Seaways has secured fresh financing to back its fleet renewal programme, tying up a credit deal worth up to $331.6m for six LR1 product carrier newbuildings in South Korea.
The New York-listed tanker owner said the facilities, signed with DNB Bank and backed by Korea Trade Insurance Corporation (K-SURE), will partly fund the 73,600 dwt scrubber-fitted, LNG-ready vessels under construction at K Shipbuilding. Deliveries are scheduled to begin in the third quarter of 2025, with all six units due to join the Panamax International Pool.
The deal consists of a $239.7m 12-year term loan facility alongside a $91.9m revolving credit facility. A portion of the term loans is insured by K-SURE, covering about 70% of the cost of the first four tankers and 60% of the last two. The combined structure gives International Seaways an effective 20-year amortisation profile.
The facilities are secured by first liens on the subsidiaries acquiring the ships and, once delivered, on the vessels themselves, along with earnings and insurance. Margins are set at 1.10% per annum on K-SURE covered tranches and 1.45% on the commercial tranche, with interest calculated on Term SOFR.
International Seaways said there are currently no drawings on the facilities, with the first loan expected to be drawn when the first newbuilding delivers late in 2025.
The Lois Zabrocky-led company controls a fleet of around 80 tankers, of which 12 are LR1s, including the six on order.
