Ardmore Refinances Four Ships
- Business & Finance
Tanker owner and operator Ardmore Shipping Corporation has signed agreements for the refinancing of four vessels.
As World Maritime News reported, Ardmore’s subsidiaries have signed sale and leaseback deals for the Ardmore Dauntless and Ardmore Defender with Ocean Yield. The lease agreements are for a period of 12 years and include options to repurchase each vessel at various stages prior to maturity.
Additionally, agreements have been secured for the sale and leaseback of the Ardmore Explorer and Ardmore Encounter, two 2014-built 50,000 Dwt Eco-design MR tankers, with an undisclosed Asian financier. The lease agreements are for a period of seven years and they include purchase options as well.
Both transactions are expected to fund in October 2018, enabling the company to cash in a total of USD 19.7 million, net of fees and the repayment of senior debt secured by the vessels.
“These transactions highlight Ardmore’s strong financial relationships and our ability to identify opportunities to strengthen our balance sheet and position the company for further opportunistic growth,” Anthony Gurnee, Ardmore’s Chief Executive Officer, said.
The refinancing comes on the back of a similar deal Ardmore reported back in May for two of its 2013-built Eco-design MR product tankers. The duo secured a sale and leaseback arrangement “with a top-tier Asian financier”, the company said.
Ardmore Shipping Corporation reported a net loss of USD 13.7 million for the six months ended June 30, 2018, sinking further into the red from last year’s USD 4 million, mostly driven by challenging charter market conditions.