Navios Maritime Acquisition is closing in on the refinancing of debt due this year and next, Angeliki Frangou says.

The progress on financing follows the completion of a merger with former MLP Navios Maritime Midstream Partners which has boosted the fleet in a strengthening tanker market.

Imabari confirms four VLCC newbuildings for Navios

Chief executive Frangou told investors on a conference call Navios Acquisition had received a term sheet and was in advanced discussion to refinance $77.8m of debt due in 2019 and 2020 and extend the maturity to 2026.

While Frangou said the new financing would involve a leasing structure, more specific details were not provided.

Her comments came after Navios Acquisition reported a fourth quarter adjusted loss of $14m, slightly more than the $12.3m loss recorded a year ago.

The company has a fleet of 43 tankers following the merger and renewal is underway with two scrubber-fitted VLCCs ordered in Japan and under bareboat charters.

Ted Petrone, vice chairman of the shipowner, voiced confidence in the tanker market on the earnings call.

“We know that while the order book shows 98 VLCCs as of 1 February , there are a 123 VLCCs over 17 years of age,” he said.

“With the upcoming IMO 2020 and ballast water management regulations that will lead to some vessel retirement, we believe that the orderbook and fleet are well balanced.

“Given the outlook for continued tonne-mile growth, the supply-and-demand fundamentals look favorable going forward.”