Navigator Gas Announces Entry Into $147.6 Million Secured Term Loan and Revolving Credit Facility

Rhea-AI Summary

Navigator Holdings (NYSE: NVGS), operating as Navigator Gas, has secured a $147.6 million term loan and revolving credit facility with Credit Agricole Corporate and Investment Bank, ING Bank N.V., and Skandinaviska Enskilda Banken AB (PUBL). The facility, dated August 9, 2024, will be used to:

• Refinance the existing March 2019 secured loan facility
• Fund the repurchase of Navigator Aurora
• Support general corporate and working capital needs

The loan is structured in two tranches: $100.8 million and $46.8 million. It matures in August 2030 with a quarterly interest rate of SOFR plus 190 basis points, including a sustainability-linked adjustment. The facility is secured by up to five of the company's vessels and contains specific conditions, covenants, and events of default.

Positive

• Secured a $147.6 million term loan and revolving credit facility
• Refinancing existing loan facility, potentially improving financial structure
• Funding repurchase of Navigator Aurora, increasing owned fleet
• Maturity extended to August 2030, providing long-term financial stability
• Sustainability-linked adjustment in interest rate, aligning with environmental goals

Negative

• New debt obligation of $147.6 million
• Increased financial leverage with additional vessel collateral

LONDON, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) (NYSE: NVGS), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, announced today that Navigator Atlas L.L.C., Navigator Aurora L.L.C., Navigator Europa L.L.C., Navigator Oberon L.L.C., and Navigator Triton L.L.C. (the “Borrowers”) has entered into a secured term loan and revolving credit facility dated August 9, 2024 (the “Facility Agreement”), with Credit Agricole Corporate and Investment Bank, ING Bank N.V., and Skandinaviska Enskilda Banken AB (PUBL), pursuant to which such lenders made available to the Borrowers, up to a maximum amount of $147.6 million, subject to the terms and conditions set out in the Facility Agreement, to refinance the Company’s existing March 2019 secured loan facility, to fund the repurchase of the Navigator Aurora pursuant to the Company’s existing October 2019 sale and leaseback arrangement, and for general corporate and working capital purposes.

The loan is available to the Company in two tranches: the first, in the amount of up to $100.8 million will be used to repay the Company’s existing March 2019 secured loan facility not later than August 31, 2024 in the outstanding amount of $58.9 million, and thereafter be available for general corporate and working capital purposes; the second, in the amount of up to $46.8 million is available to fund the repurchase of Navigator Aurora not later than October 31, 2024 in the amount of $44.8 million, and thereafter be available for general corporate and working capital purposes.

The Facility Agreement will mature in August 2030 and amounts outstanding will bear interest on a quarterly basis at SOFR plus 190 basis points, which margin includes a sustainability-linked adjustment relating to fleet environmental criteria. The Facility Agreement is secured by up to five of the Company’s vessels.

Obligations under the Facility Agreement are guaranteed by Navigator Gas L.L.C. and the Company. The Facility Agreement contains certain conditions, covenants and events of default.

Mads Peter Zacho, Chief Executive Officer, commented:

“This new facility underscores our commitment to improving our already strong financial footing with significant cost savings while enhancing our operational flexibility. The sustainability-linked adjustment in the facility agreement reflects our ongoing efforts to meet environmental standards, which includes reducing emissions and improving fuel efficiency across our fleet.”

About Navigator Gas
Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. Navigator Gas’ fleet consists of 56 semi- or fully-refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable ‘floating pipeline’ between the parties, connecting the world today, creating a sustainable tomorrow.

Navigator Gas’ common stock trades on the New York Stock Exchange under the symbol “NVGS”.

Navigator Gas

Attention:	Investor Relations investorrelations@navigatorgas.com and randy.giveans@navigatorgas.com
Address:	333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002
Tel:	+1 713 373 6197 and +44 (0)20 7340 4850

Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link – New York
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com

Forward looking statements
This press release contains certain “forward-looking” statements (as defined by the Securities and Exchange Commission) concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “will,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” “scheduled,” or the negative of these terms or other comparable terminology.

These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include but are not limited to those set forth in the periodic reports Navigator files with the U.S. Securities and Exchange Commission.

All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.

Category: Financial

FAQ

What is the value of Navigator Gas's new credit facility announced on August 12, 2024?

Navigator Gas announced a new secured term loan and revolving credit facility for up to $147.6 million on August 12, 2024.

What is the purpose of Navigator Gas's new $147.6 million credit facility?

The new credit facility will be used to refinance an existing loan, fund the repurchase of Navigator Aurora, and support general corporate and working capital needs.

When does Navigator Gas's new credit facility mature?

The new credit facility for Navigator Gas (NYSE: NVGS) will mature in August 2030.

What is the interest rate for Navigator Gas's new credit facility?

The credit facility bears interest on a quarterly basis at SOFR plus 190 basis points, which includes a sustainability-linked adjustment.