Belships

Belships ASA : USD 140 million loan enables fleet expansion

The Belships Group (OSE: BEL) has secured a USD 140 million loan facility. The

loan replaces the Group's current senior debt of USD 105 million.

The new loan will be available in two tranches. An initial tranche of USD 110

million will replace Belships existing loan and strengthen the Group's working

capital. An accordion tranche of USD 30 million will be available for fleet

expansion.

Following the merger with Lighthouse Group in December 2018, Belships currently

owns twelve supramax and ultramax dry bulk vessels. In addition, the Group

operates three ultramax on time and bareboat charter with purchase options. An

ultramax newbuilding being delivered next year will bring the fleet to a total

of sixteen vessels. The Group has a balanced portfolio, with ships operating

both on time charter and in the spot market. Belships is actively pursuing an

expansion strategy and expects to acquire additional supramax and/or ultramax

vessels going forward.

The new loan enables fleet growth while also further improving the Group's

financial robustness. Under the new financial framework, the Group will be cash

positive (after opex, overhead and debt service) at a day rate of approximately

USD 7,000 for the remaining open ship days in the coming 24 months. In addition

Belships' cash holding upon completion of tranche one of the refinancing will be

approximately USD 30 million.

The loan has a margin of 275 basis points with the first downpayment in Q3

2020. The initial tranche is based on a loan-to-value ratio (LTV) of 55%, while

the accordion tranche is based on an LTV of 60%. Lenders for the new loan

facility are DNB Bank, Danske Bank and Sparebank 1 SR-Bank.

For further information, please call Lars Christian Skarsgård, CEO, telephone

+47 977 68 061.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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