Taylor Maritime Investments | Gearing

The Company does not intend to employ any long-term or structural borrowings, save in limited circumstances, such as, temporarily, on acquiring vessel owning entities which are leveraged with debt and prior to the post-acquisition repayment of such debt. The Company does, however, expect to utilise short term borrowing, including but not limited to the Revolving Credit Facility, which the Group has entered into to assist with the acquisition of vessels, and the repayment of debt on certain vessels.

At the maximum draw down under the New Facility, the Company’s borrowings would represent just under 40% of its Gross Assets. Accordingly, in order to facilitate the Proposed Acquisition, it is also proposed that the Company would increase its current gearing limit within its Investment Policy to 40% of gross assets on an exceptional basis, with a commitment to bring gearing back within the current limit of 25% of gross assets within 18 months of the entry into of such facility through a combination of vessel sales and cash generation.