Icon Energy enters into financing term sheet

Icon Energy announces: a cash dividend of $0.08 per common share for the second quarter of 2024; entering into a financing term sheet in connection with the acquisition of a Kamsarmax dry bulk carrier that we previously announced on August 8, 2024; and certain preliminary unaudited interim financial results for the six-month period ended June 30, 2024. The company said, “We have entered into a non-binding term sheet with a leading international financial institution for a new senior secured credit facility in an aggregate amount of up to $16 million. If completed, the proceeds of the New Credit Facility are expected to be used to finance a portion of the purchase price of our previously-announced acquisition of a Kamsarmax dry bulk carrier and leverage our existing Panamax dry bulk carrier, M/V Alfa. Pursuant to the Term Sheet, the lender may also make available to us an additional aggregate amount of up to $75 million to finance future vessel acquisitions. This amount will remain uncommitted and equally, we will not be obliged to borrow this amount, or any part thereof, and we will not be charged any associated commitment or other fees. We expect that the New Credit Facility will be secured by, among other things, a first priority cross-collateralized mortgage on the vessels, a first priority assignment of earnings and insurances, and a pledge of the earnings accounts for such vessels. We also expect that the New Credit Facility will contain financial and other covenants customary for transactions of this type, will have a four-year term, and will bear interest at 3.95% over SOFR. The New Credit Facility is subject to important conditions, including the negotiation and execution of definitive documentation and the satisfaction of certain customary closing conditions. The New Credit Facility is expected to be concluded prior to us taking delivery of the previously-announced Kamsarmax dry bulk carrier.”