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Long-term Debt | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Long-term Debt | 9. Long-term Debt
|  | Term Loans |  |  |  |
Issue Date/ Refinancing Date |  |  |  |  | Maturity Date |  |  | Drawn Amount |  |  | December 31, 2023 |  |  | December 31, 2024 |
March 2023 |  |  |  |  |  |  | January 2032 |  |  |  | 70,000,000 |  |  |  | — |  |  |  | 66,719,215 |
May 2016 |  |  |  |  |  |  | December 2025 |  |  |  | 65,650,000 |  |  |  | 21,234,160 |  |  |  | 19,161,840 |
March 2017 |  |  |  |  |  |  | April 2026 |  |  |  | 70,787,500 |  |  |  | 42,343,739 |  |  |  | — |
August 2021 |  |  |  |  |  |  | August 2026 |  |  |  | 60,000,000 |  |  |  | 29,260,092 |  |  |  | — |
December 2021 |  |  |  |  |  |  | January 2028 |  |  |  | 59,400,000 |  |  |  | 31,279,000 |  |  |  | — |
Total |  |  |  | 124,116,991 |  |  |  | 85,881,055 |
Current portion of long-term debt |  |  |  | 16,863,076 |  |  |  | 23,537,305 |
Long-term debt |  |  |  | 107,253,915 |  |  |  | 62,343,750 |
Total debt |  |  |  | 124,116,991 |  |  |  | 85,881,055 |
Current portion of deferred finance charges |  |  |  | 238,603 |  |  |  | 203,491 |
Deferred finance charges non-current |  |  |  | 335,740 |  |  |  | 787,895 |
Total deferred finance charges |  |  |  | 574,343 |  |  |  | 991,386 |
Total debt |  |  |  | 124,116,991 |  |  |  | 85,881,055 |
Less: Total deferred finance charges |  |  |  | 574,343 |  |  |  | 991,386 |
Total debt, net of deferred finance charges |  |  |  | 123,542,648 |  |  |  | 84,889,669 |
Less: Current portion of long-term debt, net of current portion of deferred finance charges |  |  |  | 16,624,473 |  |  |  | 23,333,814 |
Long-term debt |  |  |  | 106,918,176 |  |  |  | 61,555,855 |
Changes in the Company’s outstanding term loans as of December 31, 2023 and 2024 are as follows: 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 a 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 related interest rate swap agreements 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 is repayable 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 a 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 a 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 a 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 related interest rate swap agreement 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 a 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 related interest rate swap agreements 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 mortgage 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. For the year 2024: In February 2024, the Company prepaid in full the then outstanding balance of $29.3 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 Elixir, Eco Nical, Eco Dominator, Gas Myth and Gas Cerberus were released. Following this loan repayment, the related interest rate swap agreement was terminated and an amount of $1.0 million was collected from the respective counterparty. In May 2024, the Company prepaid in full the then outstanding balance of $29.3 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 Gas Husky, Gas Esco, Eco Universe and Eco Invictus were released. In May 2024, the Company prepaid $20.1 million of the term loan dated March 2017 with original maturity date April 2026 using cash on hand and the related mortgage on the vessel Eco Freeze was released. In August 2024, the Company prepaid in full the then outstanding balance of $19.0 million of the term loan dated March 2017 with original maturity date April 2026 using cash on hand and the related mortgage on the vessel Eco Arctic was released. Furthermore, during 2024 the Company made scheduled principal payments in connection with its term loans amounting to $10.5 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 130%,
| • |  | 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 minimum aggregate cash balance amounting to $3,867,752 as of December 31, 2024 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 and 2024 are based on a SOFR plus a margin (2022: LIBOR plus a margin). The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2022: 4.20% Year ended December 31, 2023: 7.07% Year ended December 31, 2024: 7.52% Bank loan interest expense for the above loans for the years ended December 31, 2022, 2023 and 2024 amounted to $11,446,312, $13,250,267 and $ 8,859,096, respectively. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of income. For the years ended December 31, 2022, 2023 and 2024, the amortization of deferred financing charges amounted to $855,472, $1,345,940 and $711,378 respectively, and is included in interest and finance costs in the consolidated statements of income. At December 31, 2024, 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, 2024, are as follows:
December 31, |  | Amount |
2025 |  |  | 23,537,305 |
2026 |  |  | 4,375,000 |
2027 |  |  | 4,375,000 |
2028 |  |  | 4,375,000 |
Thereafter |  |  | 49,218,750 |
Total |  |  | 85,881,055 |

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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 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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