Grindrod Shipping Holdings Ltd. Announces Completion of IVS Bulk Financing and IVS Phoenix Acquisition


Grindrod Shipping Holdings Ltd., a global provider of shipping services primarily to the dry bulk industry, announced the following transactions.

On September 15, 2021, together with the previously announced acquisition of the remaining 31.14% stake in its IVS Bulk joint venture (“IVS Bulk”) and the simultaneous repurchase of the IVS Bulk preferred shares on September 1, 2021, the Company closed the $ 23 million increase in one of its existing IVS Bulk credit facilities to replace working capital used to fund the transaction. The new debt is on the same terms as the existing facility.

On September 16, 2021, the Company completed the acquisition and concurrent financing of the 2019 Japanese-built ultramax bulk carrier IVS Phoenix. As previously reported, the vessel was already part of Grindrod Shipping’s base fleet and was initially chartered for a minimum period of three years from delivery with two one-year extensions and no purchase options. At closing, the company acquired the vessel for $ 23.5 million, which we believe reflects a significantly reduced price compared to management‘s estimate of the vessel’s fair market value due to the termination. advance notice of the charter agreement in force. The Group has simultaneously entered into a financing agreement with a separate third party in Japan at attractive conditions for a net amount of $ 25.0 million. As part of the financing agreement, the Group will charter the bareboat vessel for a period of up to 15 years and has the right, but not the obligation, to acquire the vessel after the first two years of l ‘charter.
Source: Grindrod Shipping Holdings Ltd.

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