Shipping company Navig8 Product Tankers, a joint venture between the Navig8 Group and DVB Bank, has entered into sale and leaseback agreements for three of its 109,999 dwt product LR2 tankers.
Signed with Bank of Communications Finance Leasing Co Ltd. (BoComm), the deals would result in net proceeds of up to USD 118.8 million.
Navig8 Product Tankers intends to use a portion of the proceeds to repay existing loans used to finance the vessels’ newbuilding contracts under the multi-bank loan facility announced by in October 2014.
The sale and leaseback agreements will see the LR2 tankers sold and delivered to BoComm for 10-year bareboat charters.
Navig8 Product Tankers has purchase options to re-acquire the vessels during the charter period.