Wellard Disposes of Livestock Carrier to Cut Debt
- Business & Finance
As part of its restructuring efforts, Australia’s largest live cattle exporter Wellard has decided to sell M/V Ocean Swagman, a 2009-built livestock carrier.
The 12,892 GT ship will be purchased by Heytesbury Holding Company or its subsidiary for USD 22 million.
Wellard will charter the 130-meter-long vessel back from Heytesbury for an initial period to 31 March 2021, with options to extend for up to 4 years.
“The sale and leaseback of the MV Ocean Swagman represents a further significant step in Wellard’s ongoing restructure plan to reduce debt levels and improve financial and operating flexibility,” the company said in a statement.
Specifically, with the newest transaction, Wellard will reduce debt from USD 85 million to about USD 64 million.
“Heytesbury’s purchase of the M/V Ocean Swagman provides an attractive opportunity for Wellard to realise the equity value in the ship while retaining continued use of the vessel for chartering or exporting opportunities,” John Klepec, Wellard’s Executive Chairman, commented.
Ocean Swagman has the capacity to transport 7,000 cattle or 26,000 sheep, or a combination of both. It is the sister ship of the 2010-built Ocean Outback which was sold for USD 26 million in 2017.