Luxembourg-based marine transport company d’Amico says that the transaction will contribute to the liquidity needed to complete the company’s fleet renewal program.
Luxembourg-based marine transport company d’Amico International Shipping S.A. has signed an agreement to sell and then lease back one of its tanker vessels, the company revealed Sept. 26.
Dublin-based d’Amico International subsidiary d’Amico Tankers DAC has signed a memorandum of agreement and bareboat charter contract with a subsidiary of Sole Shipping Special Opportunities Fund II LP for the sale and leaseback of the 12-year-old MT High Priority, a 46,847 dwt medium-range product tanker vessel, for $13 million USD.
“This transaction will generate, net of the reimbursement of the vessel’s existing bank debt, a positive cash effect upon sale for d’Amico Tankers of around $ 6.5 million,” DIS explained in a statement, saying that the amount would contribute to the liquidity needed to complete the company’s fleet renewal program.
The terms of the transaction state that d’Amico Tankers will still maintain full control of the vessel, since it includes a five-year bareboat charter agreement with a purchase obligation at the end of the fifth year. d’Amico Tankers also said that it has the option of repurchasing the vessel starting from the second anniversary of her sale.
“I am happy to announce the conclusion of this sale and lease back deal with a reputable counterparty, at a competitive cost of funds,” d’Amico International Shipping CEO Marco Fiori said. “As an additional benefit, we will retain the commercial control of the ship, allowing us to satisfy the needs of our large customer base.”
Following the transaction, DIS said, its fleet is now made up of 55-and-a-half double-hulled product tankers with an average age of about 7.7 years. Of those tankers, of which 27 are owned vessels, 25.5 are chartered-in vessels and three are bareboat chartered.
Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of six new long range product tankers with expected delivery between Q4 2017 and 2018.
d’Amico to sell, lease back tanker for $6.5m
