Navigator Gas Secures $133.7M Loan to Finance Two 48,500 cbm Ethylene Carriers
Navigator Gas secured a $133.77 million senior secured term loan to finance 65% of pre- and post-delivery installments for two 48,500 cbm ethylene carriers. The vessels are scheduled for delivery in November 2027 and January 2028 under a five-year facility at SOFR plus 1.50%.
1. Loan Agreement Details
Navigator Gas and its subsidiaries Navigator Parsec L.L.C. and Navigator Pleione L.L.C. entered into a senior secured pre- and post-delivery term loan facility with ABN AMRO Bank N.V., Crédit Agricole Corporate & Investment Bank and Nordea Bank Abp, filial i Norge. The facility provides up to $133.77 million to finance 65% of pre-delivery and delivery installments under existing shipbuilding contracts.
2. Vessel Construction and Delivery Schedule
The financing supports construction of two 48,500 cubic metre liquefied ethylene carriers at Jiangnan Shipyard Group and China Shipbuilding Trading. Deliveries are scheduled for November 2027 and January 2028, with remaining installment payments funded from Navigator Gas’s available cash resources.
3. Facility Terms and Impact
The five-year loan bears quarterly interest at SOFR plus 1.50%, is secured by mortgages over the newbuild vessels and guaranteed by Navigator Gas and Navigator Gas L.L.C., and contains standard covenants and default events. CFO Gary Chapman noted that securing competitive funding advances the company’s newbuilding program, enhances fleet capabilities and delivers long-term value to shareholders.