Rubico Inc. Finalizes Fleet Refinancing
Rubico Inc. (NASDAQ: RUBI), a prominent owner and operator of modern, fuel-efficient Eco tanker vessels, recently announced a significant achievement in its financial strategy. The company successfully completed a sale and leaseback financing agreement with a major Chinese financier, aimed at refinancing two of its 157,000 dwt Suezmax tankers, namely, M/T Eco West Coast and M/T Eco Malibu.
Details of the Financing Agreements
The financing agreement brings substantial gross proceeds of approximately $10.4 million before fees and expenses. This amount ensures that the company can repay previous debt obligations while taking a step towards enhancing its financial stability. The arrangements were tailored to meet Rubico's specific needs, demonstrating a thoughtful approach to fleet management and financial planning.
Statements from Leadership
Kalliopi Ornithopoulou, President and CEO of Rubico Inc., expressed confidence regarding this financing move. She stated, "The amount of cash released from the concluded deals significantly surpasses our current market capitalization. Even with the new debt levels, our fleet's leverage remains conservatively set at around 50%. This financial maneuver allows us to focus on growth while maintaining a strong positioning in the market."
Refinancing of the Eco West Coast
The sale and leaseback for the M/T Eco West Coast is set at $42.0 million. Under this agreement, Rubico will bareboat charter the vessel for ten years, featuring 120 monthly installments of $0.18 million. Additionally, there is a purchase obligation of $20.0 million at the end of the ten-year period, based on a competitive interest rate of SOFR plus a margin of 1.95% per annum.
Refinancing of the Eco Malibu
Similarly, the refinancing for the M/T Eco Malibu stands at $42.0 million. This agreement allows for a bareboat charter over ten years as well, with a plan that includes 120 monthly payments of $0.19 million. The vessel can also have a purchase obligation of $19.0 million at the charter's conclusion, interfaced with an interest rate of SOFR plus 2.1% per annum.
Company Overview
Rubico Inc. is a leading global provider of shipping transportation services, focusing on the ownership and operation of modern, eco-friendly vessels. Incorporated under the laws of the Republic of the Marshall Islands, the company operates from its executive offices located in Athens, Greece. At present, its shares are traded on the Nasdaq Capital Market under the ticker symbol "RUBI."
Contact Information
For those interested in learning more about Rubico, you can reach out to:
Nikolaos Papastratis
Chief Financial Officer
Rubico Inc.
Tel: +30 210 812 8107
Email: npapastratis@rubicoinc.com
Frequently Asked Questions
What is the recent financial move by Rubico Inc.?
Rubico Inc. has successfully completed a sale and leaseback financing agreement to refinance two of its Suezmax tankers.
How much did Rubico Inc. raise from this refinancing?
The company raised approximately $10.4 million before fees and expenses, which will help them repay existing debts.
What is the duration of the bareboat charter for the Eco West Coast?
The bareboat charter for the Eco West Coast lasts for a period of ten years, with structured monthly payments.
What are the financial obligations associated with the Eco Malibu charter?
The Eco Malibu charter involves payments of $0.19 million a month, along with a purchase obligation of $19 million at the end of the charter period.
How is Rubico Inc. positioned in the market?
With conservative leverage levels and strategic refinancing, Rubico Inc. is positioned to focus on growth while maintaining market stability.
