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Shipbuilding

about 10 years ago

Navig8 Chemical Inks Sale and Leaseback for Tanker Duo

Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, has entered into a sale and leaseback transaction for two 25,000 dwt stainless steel chemical tankers being built by Japan’s Kitanihon Shipbuilding. Under the agreement, which was entered into with subs

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Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, has entered into a sale and leaseback transaction for two 25,000 dwt stainless steel chemical tankers being built by Japan’s Kitanihon Shipbuilding.

Under the agreement, which was entered into with subsidiaries of Japan-based financial services company SBI Holdings, the vessels will be bought by SBI on their respective deliveries from Kitanihon.

Additionally, Navig8 Chemical Tankers entered into 11-year bareboat charters for the new ships, commencing at the time of their deliveries.

The company has purchase options to re-acquire the vessels during the charter period, with the first such option exercisable on or around the fifth anniversary of each delivery.

Navig8 Chemical Tankers said that the net proceeds from the transaction will be USD 74 million.

Furthermore, CA-CIB will also provide debt financing of up to USD 24.8 million to reimburse the company in respect of pre-delivery instalments already paid to Kitanihon for the tankers.

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This pre-delivery financing will be repaid once the vessels are delivered.

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