The Oslo-listed Ocean Yield ASA has entered the tanker market, buying eight newbuilding chemical tanker resales for a total consideration of USD 306.8 million, in combination with 15-year “hell and high” bareboat charters to Navig8 Chemical Tankers.
The first four vessels, being 37,000 dwt IMO II chemical carriers built by Hyundai Mipo Dockyard, Korea, are scheduled for delivery in Q2 and Q3 2015.
The last four vessels, being 49,000 dwt IMO II chemical carriers built by STX Korea, are scheduled for delivery in Q1-Q3 2016.
The transaction will be funded by a fully underwritten bank financing of about 69 % of the gross purchase price, a seller’s credit of about 10% and the remaining amount with other debt and existing cash.
Navig8 Chemical Tankers will have certain options to acquire the vessels during the charter period, with the first option exercisable after five years.
Furthermore, Ocean Yield will provide Navig8 Chemical Tankers with a pre-delivery loan matching the remaining yard installments for the STX vessels.
“We are pleased to announce the investment in 8 newbuilding chemical tankers as it allows us to further diversify our portfolio of vessels and the transaction fits very well with our strategy to invest in modern vessels with long term charters,” Ocean Yield ASA’s Chief Executive Officer Lars Solbakken said.
”Due to our strong balance sheet the transaction is done without raising any new equity and the new investment will therefore have a very positive effect on both earnings and dividend capacity per share.”