TORM announces USD 630m medium term bank funding

TORM has in line with its strategy followed a plan for strengthening the financial position of the Company. As part of this plan USD 630m will now be made available for
the Company in the medium term. TORM has agreed an amendment of its revolving credit facility agreement of USD 900m with Danske Bank A/S, BNP Paribas, HSH Nordbank AG and SEB that matures in 2013 with a bullet payment of USD 630m. The agreement extends the facility to 2015 where it matures with a bullet payment of USD 480m. The Company will, as part of the agreement, secure that the cash equity injection of USD 100m, as announced earlier this year, will be completed by mid-December 2011 at the latest. The facility will continue with TORM’s existing covenant package. In addition, a market value test will be applicable from 2013 and certain ordinary dividend restrictions will apply. "We are pleased that we are now refinancing a significant part of our bank facilities in addition to the planned rights issue later this year. It is strengthening TORM’s financial position in line with our strategy and it is positioning us for the expected recovery in the product tanker market,” CFO Roland M. Andersen states.
Source: Torm