Annuity loan means that you pay the same instalment amount, principal and interest until the loan has been fully repaid (provided that the interest rate remains unchanged). As the loan is repaid, the principal payments constitute a larger share of the total amount.
The debt service per day (interest and loan repayment amount per day) for an annuity loan is … Read the rest
Bareboat charter is an arrangement for the chartering or hiring of a ship whereby no crew or provisions are included as part of the agreement. The charterer provides crew, bunkers, and pays all operating costs.
Debt Service Break-Even is calculated by taking the debt service per day and adding the OPEX per day, including provisions for periodical dry docking (DD)/special survey (SS). If the debt service per day is USD6,780, the OPEX (excluding drydocking) is USD5,800 per day, and the estimated cost of the next drydocking is USD250,000 with 887 earnings days (30 months adjusted … Read the rest
The ratio of EBITDA divided by Debt Service
Debt Service Per Day is calculated by taking the total debt service during a period and dividing it by the number of days in the period but adjusted for oﬀ-hire. For example, if the debt service (scheduled loan repayments plus interest payments) for a period is USD1.2 million over 182 days and the expected oﬀ-hire in the same period is … Read the rest
This ratio is calculated by taking the total cash ﬂow available to service debt during a speciﬁed period and dividing it by the total amount of debt repayment plus interest payment for the same period. The period chosen is normally that from one debt repayment date to the next (typically, six months).
Interest Cover Ratio is calculated by dividing the total cash ﬂow available to service debt during a speciﬁc period and dividing it by the interest payment for the same period. Where interest is not being paid, the lending bank will have to account for the loan as being non-performing and make necessary loss provisions in its accounts. The bank may, … Read the rest
London Interbank Offered Rate (LIBOR)