Stolt-Nielsen raises Jo Tankers acquisition debt

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Norwegian bulk liquids shipping/storage company Stolt-Nielsen has raised $325 million of bridging and term loan facilities from Danske Bank, Nordea and DNB to partially fund the $575 million acquisition of the chemical operations of Jo Tankers. The remainder of the cash consideration will be funded by existing liquidity resources, of which the company had $399 at the end of May.

The borrower has agreed to take over 13 chemical tankers, and to enter a joint venture which will give it 50% ownership of eight 33,000 dwt newbuilds on order from New Times Shipbuilding in China. The first new vessel was delivered in early July and the remainder are to be delivered in the second half of 2016 and into 2017.

The company is also in discussion with its banks regarding a renewal of its core $650 million revolving credit facility, with a deal expected to be reached in September. ANZ, Citi, Credit Agricole, DNB, Danske, HSH Nordbank, KfW, Nordea and Swedbank were the named lenders when the original five-year deal was signed in January 2012.