Resulting in debt write-off of $4.3 million
Maroussi, Greece - Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS) (the "Company" or "Pyxis Tankers"), an emerging growth pure play product tanker company, announced today that it completed the refinancing of $26.9 million of outstanding loans with a new 5 year loan facility of $20.5 million and cash of $2.1 million, and agreed with its prior lender to write-off the remaining balance of approximately $4.3 million. Storm Harbour LLP acted as advisor for the new bank facility.
Mr. Valentios Valentis, the Company's Chairman and CEO, said "the refinancing of our existing performing loans on three of our product tankers provides us a number of important financial benefits and helps position Pyxis Tankers for growth opportunities. Key aspects include:
- Lowering financial leverage by the realization of a $4.3 million gain from debt extinguishment, resulting in a proportional increase in stockholders' equity
- Increasing our net asset value by approximately 10%
- Extending individual ship loan maturities by almost 3 additional years
- Lowering break-even levels for the refinanced vessels
- Improving net working capital
- Reducing required consolidated minimum liquidity
- Creating a new commercial banking relationship.
