Xiamen Shipbuilding Pens PCTC Duo

Ocean Yield ASA has entered into newbuilding contracts for two Pure Car Truck Carriers (PCTCs) of 8,500 car capacity with Xiamen Shipbuilding Industry Co. Ltd (Xiamen).

The vessels will be delivered in January and April 2016, and will after delivery be chartered on 12-year “hell and high water” bareboat charter contracts to Höegh Autoliners (Höegh).

Höegh is regarded as one of the global leaders in deep sea car transportation and owns and operates around 60 PCTC vessels in a global trade system. Höegh already has four vessels of equal design on order from Xiamen scheduled for delivery in 2015 and will be responsible for the shipbuilding supervision. Höegh will have certain options to acquire the vessels during the bareboat charter, with the first option after five years.

Ocean Yield ASA’s Chief Executive Officer Lars Solbakken said in a comment: “Ocean Yield is pleased to further expand the relationship with Höegh Autoliners. By this transaction we continue to increase our contract backlog of charters to leading and reputable counterparties and thereby further strengthen our long-term dividend capacity.”

Ocean Yield has secured long-term debt financing for approximately 70 per cent of the investment. The remaining amount will be funded by equity. Total delivered cost for the two vessels will be approximately $137 million and Ocean Yield’s estimated EBITDA contract backlog including these contracts at the end of Q3 2013 will be approximately USD 1.79 billion.

[mappress]

Press Release, September 16, 2013