Norway: NOCC Acquires Two Car Carriers

Norwegian Car Carriers ASA has signed an agreement with an undisclosed party to acquire two state of the art 6,500 CEU car carriers built in 1998 and 1999 with expected closing of the transaction in late March 2012.

The total net cash investment for the vessels will be approximately USD 74.0 million. The Company has received firm debt financing offers for a total amount of USD 60 million in order to partly finance the acquisition. The remaining purchase price will be financed with equity. The consummation of the acquisition of the 1998 built vessel is dependent on a successful completion of the contemplated private placement.

Both vessels are on long term time charter to one of the major car carrier operators until 2018 and 2019 for the 1999 built and 1998 built vessel respectively. The two vessels are estimated to generate an EBITDA of about USD 9.9 million in 2012, USD 12.6 million in 2013 and USD 11.7 million in 2014. For the 1999 built vessel, the charterer has a purchase option in May 2015. The acquisition will have a positive effect on the Company’s earnings and cash flow.

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World Maritime News Staff, February 15, 2012; Image: NOCC