Precious Shipping's (SET:PSL) wholly-owned Singapore subsidiaries, Precious Fragrance and Precious Thoughts, have executed a $14.5 million senior secured amortizing term loan agreement with Bangkok Bank (SET:BBL), according to a Monday filing to the Thai stock exchange.

The company's shares were down nearly 3% in Tuesday's trade.

The company will act as the guarantor for the loan, which will be mainly used to reimburse or refinance any shareholder loans and support the borrowers' operations.

The loan will be divided into two ship loans of around $7 million and $7.5 million. Each ship loan will be repaid in 32 quarterly installments starting three calendar months after the drawdown date.

The loans will be available for 12 months from the date of the loan agreement at an interest rate of USD Secured Overnight Financing Rate plus margins.