Luxembourg - D’Amico International Shipping S.A., an international marine transportation company operating in the product tanker market, has secured a first in the Japanese market.
The company has signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the MT Cielo di Houston, a 75,000 dwt LR1 product tanker vessel (the “Vessel”), currently under construction at Hyundai-Mipo, South Korea (at their Vinashin facility in Vietnam) and expected to be delivered in January 2019. The Vessel was sold for a consideration of US$ 38.6 million.
This transaction allows d’Amico Tankers to generate at the Vessel’s delivery around US$ 10.2 million in cash, net of commissions and additional costs, relative to financing the Vessel though the previously committed loan facility, contributing to the liquidity required to complete DIS’ fleet renewal program and allowing the Company to benefit from the anticipated market recovery.
D’Amico Tankers will maintain full control of the Vessel, since a 10.2-year bareboat charter agreement was also concluded with the buyer. Furthermore, d’Amico Tankers has the option to repurchase the Vessel, after approximately 5 years and after approximately 7 years of the charter period, at a competitive cost of funds.
“I am glad to announce the conclusion of this transaction with a large Japanese financial institution, which will generate net cash proceeds of approximately US$ 10.2 million for DIS, relative to financing the vessel through the previously committed bank loan,” said the company chairman Paolo D’Amico.