New sale (with blind lease back & purchase contract) for d’Amico
The MT High Freedom was purchased in Japan for 28 million USD, generating a positive net cash effect of 13.4 million USD
D’Amico International Shipping S.A., an international marine transportation company operating in the product tanker market, announces that its operating subsidiary d’Amico Tankers D.A.C. (Ireland) signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the MT High Freedom, a 49,990 dwt medium-range product tanker vessel, built in 2014 by Hyundai-Mipo, South Korea for 28 million USD. This transaction allows to generate 13.4 million in cash, net of commissions and reimbursement of the vessel’s existing loan, contributing to liquidity required to complete DIS’ fleet renewal program and allowing to benefit from the anticipated market recovery.
Through this transaction d’Amico Tankers will 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 10th year of the charter period. Furthermore, d’Amico Tankers has the option to repurchase the vessel, starting from the second anniversary of her sale at a competitive cost of funds.
DIS’ fleet comprises 56.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7.5 years (of which 27 owned vessels, 26.5 chartered-in vessels and 3 bareboat chartered). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 5 LR1s (Long Range) product tankers expected to be delivered in 2018.