Differentiating Lenders

Just as banks need to know their clients, borrowers also need to evaluate their lenders. Further to an earlier announcement Rickmers Maritime announced last Friday that one of its lending banks has continued to invoke the market disruption clause in one of its loans. This action reflects the bank’s belief that LIBOR does not accurately reflect its cost of funding and has no relation on the creditworthiness of the borrower. The net effect, an increase in interest cost of approximately $37,500 for the current fixing period is not material but it is telling that none of Rickmer’s other nine banks

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