Polarcus revises financial agreementCompany News // September 1, 2014
Polarcus Limited has agreed an amendment to the existing US$410 million fleet bank facility agreement entered into with DnB ASA and DVB Bank SE, Nordic Branch, Garanti-instituttet for Eksportkreditt (GIEK) and Eksportkredit/Eksportfinans.
The amendment is related to a permanent reset of the Debt Service Ratio. The Debt Service Ratio is defined as EBITDA divided by total interest and principal payments on external debt, not including repayments made before or at final maturity date that is refinanced by new debt.
The Debt Service Ratio is to be calculated quarterly, based on the last 12 months period. Under the revised covenant, Polarcus will, on a consolidated basis, maintain a Debt Service Ratio >2.0x from the third quarter of 2014 onwards