Seanergy (SHIP) Gets Loan Waivers, Amendments; Enters $10M SPA
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Seanergy Maritime Holdings Corp. (Nasdaq: SHIP) reports that two of the Company's lenders have agreed in principal to waive certain financial and other covenants of three loan facilities and to amend certain terms of two of its loan facilities. As part of the lenders' agreement, the Company also announced today that it has entered into a share purchase agreement with four entities affiliated with members of the Restis family, the Company's major shareholders, for an equity injection of $10 million.
In particular, Marfin Egnatia Bank SA ("Marfin") has agreed to an extension of the revolving and term facilities' maturity date from 2015 to 2018, the deferral of principal debt payments for 2012 and amendment of the facilities' installment profiles, an extension of the waiver on the Company's security margin covenant for the period from January 3, 2012 through January 1, 2014, as well as to waive all other financial covenants until January 1, 2014 including margin re-pricing. Additionally, Marfin has agreed to grant waivers on all previous covenants' breaches.
On the loan facility of Bulk Energy Transport (Holdings) Limited ("BET"), the Company's subsidiary, with Citibank International plc ("Citi"), as agent of the lenders, Citi has agreed to waive all covenants for the period up to and including January 1, 2013, with the exclusion of the security requirement to security value covenant to be amended from 125% to 100% and be tested quarterly, including margin re-pricing. Additionally, Citi has agreed to grant waivers on all previous covenants' breaches.
The approval of the Loan Amendments is subject to completion of documentation satisfactory to the lenders and the Company expects shortly the completion of such documentation.
As part of the equity injection plan, four entities affiliated with members of the Restis family, have agreed to purchase an aggregate of 4,641,620 common shares of the Company in exchange of $10 million. The common shares will be issued at a price equal to the average closing price of five trading days preceding the execution of the Agreement. The shares are expected to be issued by January 31, 2012.
In particular, Marfin Egnatia Bank SA ("Marfin") has agreed to an extension of the revolving and term facilities' maturity date from 2015 to 2018, the deferral of principal debt payments for 2012 and amendment of the facilities' installment profiles, an extension of the waiver on the Company's security margin covenant for the period from January 3, 2012 through January 1, 2014, as well as to waive all other financial covenants until January 1, 2014 including margin re-pricing. Additionally, Marfin has agreed to grant waivers on all previous covenants' breaches.
On the loan facility of Bulk Energy Transport (Holdings) Limited ("BET"), the Company's subsidiary, with Citibank International plc ("Citi"), as agent of the lenders, Citi has agreed to waive all covenants for the period up to and including January 1, 2013, with the exclusion of the security requirement to security value covenant to be amended from 125% to 100% and be tested quarterly, including margin re-pricing. Additionally, Citi has agreed to grant waivers on all previous covenants' breaches.
The approval of the Loan Amendments is subject to completion of documentation satisfactory to the lenders and the Company expects shortly the completion of such documentation.
As part of the equity injection plan, four entities affiliated with members of the Restis family, have agreed to purchase an aggregate of 4,641,620 common shares of the Company in exchange of $10 million. The common shares will be issued at a price equal to the average closing price of five trading days preceding the execution of the Agreement. The shares are expected to be issued by January 31, 2012.
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