Costamare Acquires Two Boxships

Costamare Inc. a leading international owner of containerships, has made an investment of approx $162 million in two new container vessels through its joint venture with York Capital Management, a New York-based investment advisor firm.

Under the deal, the company will buy two 9,000 TEU capacity vessels costing at $81 million each.

“We have close to half-a-billion dollars of equity to invest within two years, which is substantial capital for container shipping but that doesn’t mean that we will rush into transactions,” Capital.gr reported, citing Gregory Zikos, CFO of Costamare.

The vessels will be built in Asia and are scheduled for delivery in 2015.

Reminder:

Earlier this year, Costamare entered into a joint venture with York Capital Management to invest jointly in the acquisition of container vessels.

Under the Agreement:

• Costamare Inc. will hold up to a 49% interest in the joint venture. It will have the option to increase its percentage participation from a minimum of 25% to a maximum of 49% within a pre-determined time period after each acquisition commitment has been agreed upon.
• Decisions regarding vessel acquisitions will be taken jointly.
• The joint venture is expected to be each party’s exclusive vehicle for the acquisition of vessels in the container industry during the two-year investment period and it will have a right of first refusal on any container vessel acquisitions proposed by either party.
• The term of the joint venture is six years unless earlier terminated by the parties upon the occurrence of certain extraordinary events or disagreements. Upon any termination of the joint venture, Costamare Inc. will have the right to require a split of the vessel fleet between the parties.
• Costamare Shipping Company S.A. (Costamare Shipping), an affiliate of Costamare Inc. controlled by one of its principal shareholders, will provide shipmanagement services, with the right to subcontract to V.Ships Greece Ltd. and/or Shanghai Costamare Ship Management Co., Ltd. Costamare Shipping currently provides shipmanagement services to Costamare Inc. on an exclusive basis.

[mappress]
Shipbuilding Tribune Staff, October 3, 2013