Global Ports Holding signs $261 million loan agreement with Sixth Street

LONDON: Global Ports Holding Plc (LON: GPH) has entered into a five-year, senior secured loan agreement for up to $261 million with the leading global investment firm Sixth Street.

This new investment from Sixth Street will strengthen GPH’s balance sheet and provide flexible growth capital for GPH to pursue expansion opportunities at a dynamic juncture in the global cruise industry.

The loan agreement provides for two term loan facilities, an initial five-year term facility of $186.3m and an additional five-year growth facility of up to $75.0m.

The net proceeds of the initial facility, together with existing cash resources, will be used to refinance the outstanding amount of the 8.125% senior unsecured Eurobond, due 14 November 2021, issued by GPH’s wholly owned subsidiary Global Liman Isletmeleri A.S. The initial facility will also be used to pay related fees and expenses and general corporate purposes.

The net proceeds of the growth facility are proposed to be used to invest in new port projects and capital expenditure, as well as related fees and expenses.

Under the terms of the loan agreement, GPH will have the ability to select from a range of interest payment options including an all-cash interest rate, a cash interest rate of LIBOR +5.25% plus PIK rate or a PIK-only rate of LIBOR +8.5% up until December 2022.

As part of the financing arrangement with Sixth Street, the Company has agreed to issue warrants to Sixth Street for a subscription price equal to the nominal value per share representing 9.0% of GPH’s fully-diluted share capital (subject to customary adjustments).

As and when the growth facility is utilised, GPH has agreed to issue further Warrants, pro-rata to the utilisation of the $75.0m growth facility, representing up to an additional 3.75% of the fully-diluted share capital. The Warrants will become exercisable upon certain specific events including the acceleration, repayment in full or termination of the loan, de-listing of GPH or a change of control.

The issue of the Warrants in connection with the new financing arrangements is conditional on the passing of certain resolutions by shareholders at a General Meeting to be convened on 9 June 2021. Further details of the General Meeting are contained below.

Global Ports Holding, Chairman and Co-Founder Mehmet Kutman said: “I am delighted that we have reached this agreement with Sixth Street. This timely financing arrangement and partnership, not only secures our current financing needs for the next five years, it gives us the financial flexibility to take advantage of a significant pipeline of growth opportunities. We look forward to using this capital to continue to expand our business.”

Global Ports Holding, Chief Executive Officer Emre Sayin said: “Securing this loan agreement is an important step in turning the threat of Covid into an opportunity for GPH. As we look to the future, many of our cruise ports have already started to welcome passengers in 2021 and the majority of our ports have calls scheduled to start in the next few weeks. Our commitment to our current and future destinations remains undiminished, while 2020 was a year of uncertainty, 2021 is shaping up to be a year of hope.”

Global Ports Holding PLC

129.00 GBX +3.50 (2.79%)

21 May, 4:30 pm GMT+1 · Disclaimer


Leave a Reply

Your email address will not be published. Required fields are marked *