Just as we thought banks’ dollar funding costs have stablised, Rickmers Maritime announced last week that one of its lending banks had invoked the market disruption clause on its loan. The higher interest rate will result in an incremental increase in interest expense of approximately USD 47,000 for this fixing period. The shipping trust assured investors that none of the other nine banks with whom it had secured credit lines has invoked the market disruption clause. For the investors, the distribution per unit should not be immediately impacted considering that the trust has cash accumulated from its policy of retaining a portion of its distribution cash flow.
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Tags: · First Ship Lease, market disruption, Rickmers Maritime
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