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Long-term Debt | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Long-term Debt | 9. Long-term Debt
Term Loans |  |  |
Issue Date/ Refinancing Date |  | Maturity Date |  |  | Drawn Amount |  |  | December 31, 2022 |  |  | December 31, 2023 |
January 2021 |  |  | January 2026 |  |  |  | 25,000,000 |  |  |  | 19,645,000 |  |  |  | — |
January 2021 |  |  | January 2028 |  |  |  | 43,800,000 |  |  |  | 30,893,547 |  |  |  | — |
May 2016 |  |  | December 2025 |  |  |  | 65,650,000 |  |  |  | 44,635,980 |  |  |  | 21,234,160 |
March 2017 |  |  | April 2026 |  |  |  | 70,787,500 |  |  |  | 47,399,991 |  |  |  | 42,343,739 |
April 2020 |  |  | February 2027 |  |  |  | 34,450,000 |  |  |  | 30,884,026 |  |  |  | — |
August 2021 |  |  | August 2026 |  |  |  | 60,000,000 |  |  |  | 50,304,660 |  |  |  | 29,260,092 |
December 2021 |  |  | January 2028 |  |  |  | 59,400,000 |  |  |  | 55,224,000 |  |  |  | 31,279,000 |
Total |  |  |  |  |  |  |  |  |  |  | 278,987,204 |  |  |  | 124,116,991 |
Current portion of long-term debt |  |  |  |  |  |  |  |  |  |  | 30,666,756 |  |  |  | 16,863,076 |
Long-term debt |  |  |  |  |  |  |  |  |  |  | 248,320,448 |  |  |  | 107,253,915 |
Total debt |  |  |  |  |  |  |  |  |  |  | 278,987,204 |  |  |  | 124,116,991 |
Current portion of deferred finance charges |  |  |  |  |  |  |  |  |  |  | 582,950 |  |  |  | 238,603 |
Deferred finance charges non-current |  |  |  |  |  |  |  |  |  |  | 1,291,625 |  |  |  | 335,740 |
Total deferred finance charges |  |  |  |  |  |  |  |  |  |  | 1,874,575 |  |  |  | 574,343 |
Total debt |  |  |  |  |  |  |  |  |  |  | 278,987,204 |  |  |  | 124,116,991 |
Less: Total deferred finance charges |  |  |  |  |  |  |  |  |  |  | 1,874,575 |  |  |  | 574,343 |
Total debt, net of deferred finance charges |  |  |  |  |  |  |  |  |  |  | 277,112,629 |  |  |  | 123,542,648 |
Less: Current portion of long-term debt, net of current portion of deferred finance charges |  |  |  |  |  |  |  |  |  |  | 30,083,806 |  |  |  | 16,624,473 |
Long-term debt |  |  |  |  |  |  |  |  |  |  | 247,028,823 |  |  |  | 106,918,176 |
Changes in the Company’s outstanding term loans as of December 31, 2022 and 2023 are as follows: For the year 2022: In December 2021, the Company entered into a loan agreement of $59,400,000 with a bank in order to refinance certain existing term loans which had an outstanding balance as of December 31, 2021 amounting to $44,666,018. The new term loan was drawn in three tranches during January 2022 and carries interest at Secured Overnight Financing Rate (“SOFR”) plus a margin. Each tranche is repayable in 24 equal quarterly installments and a balloon payment payable together with the last installment in January 2028. In January 2022, the Company prepaid $6.2 million of the term loan dated January 2021 with original maturity date January 2028 with cash on hand and the related mortgage on the vessel Eco Loyalty was released. For the year 2023: In February 2023, the Company prepaid $5.9 million of the term loan dated August 2021 with original maturity date August 2026 using cash on hand and the related mortgages on the vessels Gas Astrid and Gas Exelero were released. In March 2023 and in June 2023, the Company prepaid a total of $ 29.7 million of the term loan dated January 2021 with original maturity date January 2028 using cash on hand and the related mortgages on the vessels Eco Corsair, Eco Royalty, Eco Czar, Eco Nemesis and Eco Elysium were released. Following this loan repayment, the Swaps 5 and 6 (Note 10) were terminated and an amount of $ 2.0 million was collected from the respective counterparty. In March 2023, the Company entered into a loan agreement of $70,000,000 with a bank in order to finance the acquisition of the vessels Eco Oracle and the Eco Wizard that were acquired from affiliated entities in January 2024 (Note 3). The term loan was fully drawn down in two equal tranches, the first of which was drawn down on January 9, 2024, and the second one was drawn down on January 31, 2024. The term Loan will be repaid in thirty two quarterly installments plus a balloon payment payable together with the last instalment for each vessel in January 2032. In May 2023, the Company prepaid $29.9 million of the term loan dated April 2020 with original maturity date February 2027 using cash on hand and the related mortgages on the vessels Eco Alice and Eco Blizzard were released. In May 2023, the Company prepaid $19.2 million of the term loan dated December 2021 with original maturity date January 2028 using cash on hand and the related mortgages on the vessels Eco Enigma and Eco Texiana were released. In June 2023, the Company prepaid $18.2 million of the term loan dated January 2021 with original maturity date January 2026 using cash on hand and the related mortgages on the vessels Eco Steam, Eco Chios and Eco Galaxy were released. Following this loan repayment, the Swap 4 (Note 10) was terminated and an amount of $1.2 million was collected from the respective counterparty. In June 2023, the Company prepaid $ 20.3 million of the term loan dated May 2016 with original maturity date December 2025 using cash on hand and the related mortgage on the vessel Eco Frost was released. Following this loan repayment, the Swaps 1 and 3 (Note 10) were terminated and an amount of $0.7 million was collected from the respective counterparty. In July 2023, the Company prepaid $8.7 million of the term loan dated August 2021 with original maturity date August 2026 using cash on hand and the related mortgages on the vessel Eco Dream was released. Furthermore, during 2023 the Company made scheduled principal payments in connection with its term loans amounting to $23.0 million. The above loans are generally repayable in quarterly or semi-annual installments and a balloon payment at maturity and are secured by first priority mortgages over the vessels involved, plus the assignment of the vessels’ insurances, earnings and operating and retention accounts with the lenders, and the guarantee of ship-owning companies, as owners of the vessels. The term loans contain financial covenants requiring the Company to ensure that:
| • |  | the aggregate market value of the mortgaged vessels at all times exceeds a certain percentage of the amounts outstanding as defined in the term loans, ranging from 120% to 135%,
| • |  | the leverage of the Company defined as Total Debt net of Cash should not exceed 80% of total market value adjusted assets,
| • |  | the Interest Coverage Ratio of the Company which is EBITDA (as defined in the loan agreements) to interest expense to be at all times greater than 2.5:1,
| • |  | at least a certain percentage of the Company is to always be owned by members of the Vafias family,
| • |  | the Company should maintain on a monthly basis a cash balance amounting to $659,137 representing a proportionate amount of the next instalment and relevant interest plus a minimum aggregate cash balance amounting to $5,893,721 in the earnings accounts with the relevant banks as well as a free cash balance of $10,000,000 at the end of each quarter.
| • |  | dividends paid by the borrower will not exceed 50% of the Company’s free cash flow in any rolling 12 month period.
The interest rates on the outstanding loans as of December 31, 2023 are based on SOFR plus a margin (2021 and 2022: LIBOR plus a margin) which varies from 1.85% to 2.15%. The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2021: 2.88% Year ended December 31, 2022: 4.20% Year ended December 31, 2023: 7.07% Bank loan interest expense for the above loans for the years ended December 31, 2021, 2022 and 2023 amounted to $8,684,097, $11,446,312 and $13,250,267 respectively. Of these amounts, for the years ended December 31, 2021, 2022 and 2023, the amounts of $20,060, nil and nil respectively, were capitalized as part of advances paid for vessels under construction. Furthermore, a total amount of $3.9 million that was collected during 2023 relating to the termination of Swaps 1, 3, 4, 5, 6 (Note 10) has been included in interest and finance costs in the consolidated statements of operations for the year ended December 31, 2023. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of operations. For the years ended December 31, 2021, 2022 and 2023, the amortization of deferred financing charges amounted to $1,157,804, $855,472 and $1,345,940 respectively, and is included in interest and finance costs in the consolidated statements of operations. At December 31, 2023, the Company was in compliance with all of its debt financial covenants. The annual principal payments to be made, for the abovementioned loans, after December 31, 2023, are as follows:
December 31, |  | Amount |
2024 |  |  | 16,863,076 |
2025 |  |  | 33,952,596 |
2026 |  |  | 54,058,319 |
2027 |  |  | 4,012,000 |
Thereafter |  |  | 15,231,000 |
Total |  |  | 124,116,991 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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