GRINDROD SHIPPING HOLDINGS LIMITED - Grindrod Shipping Holdings Ltd. Announces Credit Facility Amendments

Grindrod Shipping Holdings Ltd. Announces Credit Facility Amendments

GRINDROD SHIPPING HOLDINGS LTD.
ABBREVIATED NAME: GRINSHIP
Registered in Singapore with registration number 201731497H
JSE Share code: GSH
ISIN: SG9999019087
Primary listing on NASDAQ Global Select Market
Secondary listing on the JSE Main Board


Grindrod Shipping Holdings Ltd. Announces Credit Facility Amendments

Introduction

On June 7, 2021, Grindrod Shipping Holdings Ltd. (“Grindrod Shipping”, the “Company”, or “it”, “we”, or “our”)
entered into amendments to its $100.0 million senior secured credit facility, dated May 8, 2018, as previously
amended and supplemented, with Crédit Agricole Corporate and Investment Bank, DVB Bank SE (formerly
known as DVB Bank SE Singapore Branch) and Standard Chartered Bank, Singapore Branch (the “$100M
Facility”).

The amendments in respect of the $100M Facility are applicable on and from June 7, 2021 and, generally:

    -   amended the amount of the minimum book value net worth covenant; and
    -   documented the transfer of the commitment originally provided by lenders DVB Bank SE and Standard
        Chartered bank, Singapore Branch to NIBC Bank N.V.

The purpose of the amendments was to document the bank commitment transfer and to align the minimum
book value net worth covenant across our various credit facilities.

Credit Facility Amendments

Book value net worth covenant

The book value net worth covenant was revised such that the minimum book value net worth covenant from
January 1, 2021 was amended to not less than the lower of (a) the aggregate of $200 million plus 25% of the
amount of positive retained earnings (defined below) (accruing from June 30, 2019) and 50% of each capital
raise (defined below); and (b) $275 million. For purposes of the foregoing, “positive retained earnings” means
the positive retained earnings of Grindrod Shipping and its subsidiaries on a consolidated basis tested bi-
annually at each June 30 and December 31, and “capital raise” means the dollar amount (or equivalent amount
in dollars) of the proceeds of any equity capital raised by Grindrod Shipping (without giving effect to any capital
raised by its subsidiaries) as evidenced in the latest accounts as of each June 30 or December 31.

There were no changes to the following covenants:

    -  the cash and cash equivalents covenant, which requires the Company to have cash and cash equivalents
       (which is determined for certain of the credit facilities including cash restricted in certain security
       accounts) of not less than $30 million;
    -  the debt to market adjusted tangible fixed assets ratio covenant, which requires a ratio of debt to
       market adjusted tangible fixed assets of not more than 75%, with the definition of “debt” excluding
       lease obligations recognized under International Financial Reporting Standards 16 (“IFRS 16”), and the
       definition of “tangible fixed assets” excluding right-of-use assets relating to ships;
   -   the working capital covenant, which requires positive working capital, such that consolidated current
       assets (excluding any adjustments made for IFRS 16) must exceed the consolidated current liabilities
       (excluding any adjustments for IFRS 16) as evidenced in the latest accounts as of each June 30 and
       December 31; and
   -   the minimum security value ratio covenant set at 135% for the duration of the loan.

The financial covenants in the credit facilities, after giving effect to the amendments described above, are
consistent across the credit facilities (other than for differences in the determination of cash and cash
equivalents and the minimum security value ratio covenant, each as described above).



By order of the Board
15 June 2021
Sponsor: Grindrod Bank Limited




                                                  

Date: 15-06-2021 07:20:00
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