Tanker giant Frontline is working to clear away short-term debt maturities as it arranged two new loan deals in July and August.
In the John Fredriksen-controlled company's second-quarter result, the Oslo-listed shipowner revealed that last month it entered into a senior secured term loan facility with a number of unnamed banks for up to $329m.
This refinances an existing loan maturing in December this year.
The new debt expires in February 2023, with interest of Libor plus a margin of 1.9%.
Frontline drew down the whole amount in July.
And this month, the company won a commitment from Chinese lenders the Export-Import Bank of China (CEXIM) and China Export & Credit Insurance Corp (Sinosure) for $134m.
This partially finances the remaining cost of $161m for its four LR2 tanker newbuildings due in 2021 and 2022 from Shanghai Waigaoqiao Shipbuilding.
The finance will last 12 years at interest which is line with the shipowner's other facilities, it said.
Strong cash flow
Frontline chief financial officer Inger Klemp said two loans facilities were repaid in the quarter through payments totalling $349m.
These were due in December 2020 and in March 2021.
"We expect to refinance further two term-loan facilities with total balloon payments of $320.3m due in April 2021 and in June 2021 prior to maturity, leaving the company with no material maturities until 2023," she added.
"Our strong cash flow in the second quarter enabled us to both repay $60m of our $275m senior unsecured facility, reducing the amount outstanding to $60m, and to return nearly $99m to our shareholders in cash dividends."
Second-quarter net earnings hit $200m, from $1m a year ago, bringing the total for the first six months to $365m.
Revenue from its 71 ships in the three months to 30 June soared to $387m, versus $193m in the same period last year.
