d’Amico Tankers Enters into Another Product Tanker Leaseback Deal

Ireland-based d’Amico Tankers, a subsidiary of Italy’s d’Amico International Shipping (DIS), has signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the 2014-built MT High Voyager.

The sale of the 45,999 dwt medium-range product tanker for a consideration of USD 25.7 million follows several such deals in 2018.

The contracts are being pursued as the company readies for the recovery from a challenging period for the product tanker market.

The sale of the Hyundai-Mipo-built High Voyager will bring in around USD 9.6 million in cash, net of commissions and the reimbursement of the vessel’s existing loan, contributing to the liquidity required to complete DIS’ fleet renewal program.

DIS added that d’Amico Tankers would maintain full control of the vessel, since a 10-year bareboat charter agreement was also concluded with the buyer, with a purchase obligation at the end of the charter period.

The company also has the option to repurchase the vessel at any time starting from the third anniversary of her sale with three months’ notice and at a competitive cost of funds.

DIS said that its fleet now comprises 49.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 6.9 years (of which 24 owned, 17.5 time-chartered-in and 8 bareboat-chartered-in.

d’Amico Tankers additionally has one LR1 product tanker on order from Hyundai Mipo Dockyard Co. Ltd., scheduled for delivery in Q3 2019.

“I am glad to announce the conclusion of this further deal with a reputable Japanese counterparty, which will generate net cash proceeds of approximately USD 9.6 million for DIS, after the repayment of the existing bank loan and commissions,” Paolo d’Amico, Chairman of d’Amico International Shipping, stated.

“In line with other similar deals we have closed in the past, this transaction will allow us to keep full control of this modern MR vessel through a 10-year bareboat charter contract.”