Attached files
file | filename |
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8-K - PRESS RELEASE 5/7/10 - TBS International plc | press_release051110.htm |
EX-10.1 - RBS TERM LOAN FACILITY - TBS International plc | ex_10-1.htm |
EX-10.2 - RBS GUARANTEE LOAN FACILITY - TBS International plc | ex_10-2.htm |
TBS
International Announces Amendments to its Credit Facilities
DUBLIN, IRELAND – May 7, 2010 –
TBS International plc (NASDAQ: TBSI)
announced today that it has secured amendments to its credit facilities with its
syndicate of lenders led by Bank of America, its syndicate of lenders led by The
Royal Bank of Scotland and its syndicate of lenders led by DVB Group Merchant
Bank, as well as its loan agreements with AIG Commercial Equipment, Commerzbank
AG, Berenberg Bank and Credit Suisse (the "Financing
Facilities").
The
amendments modify the financial covenants and other terms of the Financing
Facilities, including covenants related to TBS's collateral coverage,
consolidated leverage ratio, consolidated fixed interest coverage ratio,
consolidated fixed charge coverage ratio and minimum cash balance.
TBS
currently expects to be in compliance with all financial covenants and other
terms of the amended Financing Facilities through
maturity. Accordingly, the long-term portion of the Company’s
outstanding debt at March 31, 2010 will be classified as long-term debt in its
consolidated balance sheet, thus remediating the uncertainty regarding TBS’s
ability to fulfill its financial commitments as they become due, which
uncertainty was the condition that raised substantial doubt about TBS’s ability
to continue as a going concern.
For
additional details, please refer to TBS’s Form 8-K to be filed with the
Securities and Exchange Commission.
Forward-Looking
Statements "Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This
press release contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current expectations and
observations.
Included
among the factors that, in the company's view, could cause actual results to
differ materially from the forward looking statements contained in this press
release are the following:
·
|
changes
in demand for the company's services, which are increasingly difficult to
predict due to current economic conditions and
uncertainty;
|
·
|
the
effect of a decline in vessel
valuations;
|
·
|
the
company's ability to maintain financial ratios and satisfy financial
covenants required by its credit facilities, as
amended;
|
·
|
the
company's ability to finance its operations and raise additional capital
on commercially reasonable terms or at
all;
|
·
|
changes
in rules and regulations applicable to the shipping industry, including
legislation adopted by international organizations such as the
International Maritime Organization and the European Union or by
individual countries;
|
·
|
actions
taken by regulatory authorities;
|
·
|
changes
in trading patterns, which may significantly affect overall vessel tonnage
requirements;
|
·
|
changes
in the typical seasonal variations in charter
rates;
|
·
|
volatility
in costs, including changes in production of or demand for oil and
petroleum products, crew wages, insurance, provisions, repairs and
maintenance, generally or in particular
regions;
|
·
|
default
by financial counterparties;
|
·
|
a
material decline or weakness in shipping rates, which may occur if the
economic recovery is not
sustainable;
|
·
|
changes
in general domestic and international political
conditions;
|
·
|
changes
in the condition of the company's vessels or applicable maintenance or
regulatory standards which may affect, among other things, the company's
anticipated drydocking or maintenance and repair
costs;
|
·
|
increases
in the cost of the company's drydocking program or delays in the company's
anticipated drydocking schedule;
|
·
|
China
Communications Construction Company Ltd./Nantong Yahua Shipbuilding Group
Co., Ltd.’s ability to complete and deliver the remaining multipurpose
tweendeckers on the anticipated schedule and the ability of the parties to
satisfy the conditions in the shipbuilding
agreements;
|
·
|
the
possible effects of pending and future legislation in the United States
that may limit or eliminate potential U.S. tax benefits resulting from the
company's jurisdiction of
incorporation;
|
·
|
Irish
corporate governance and regulatory requirements, which could prove
different or more challenging than currently expected;
and
|
·
|
other
factors that are described in the "Risk Factors" sections of the company's
periodic reports filed with the Securities and Exchange
Commission.
|
About TBS International plc:
TBS is a
fully-integrated transportation service company that provides worldwide shipping
solutions to a diverse client base of industrial shippers. Through
the TBS Five Star Service consisting of ocean transportation, operations,
logistics, port services, and strategic planning, TBS offers total project
coordination and door-to-door supply chain management. The TBS shipping network
operates liner, parcel and dry bulk services, supported by a fleet of
multipurpose tweendeckers and handysize and handymax bulk carriers, including
specialized heavy-lift vessels and newbuild tonnage. TBS has developed its
business around key trade routes between Latin America and China, Japan and
South Korea, as well as select ports in North America, Africa, the Caribbean and
the Middle East.
Visit our
website at www.tbsship.com
For more
information, please contact:
Company
Contact:
Ferdinand
V. Lepere
Executive
Vice President and Chief Financial Officer
TBS
International plc
Tel.
914-961-1000
InvestorRequest@tbsship.com
Investor
Relations / Media:
Nicolas
Bornozis
Capital
Link, Inc. New York
Tel.
212-661-7566
E-mail:
tbs@capitallink.com