Navig8 Product Tankers concludes sale and leaseback of 4 newbuilding vessels with Ocean Yield ASA and 8 with CSSC (Hong Kong)
Navig8 Product Tankers Inc. has entered into sale and leaseback agreements with Ocean Yield ASA (OCY.OL) (“Ocean Yield”) for four of the company’s newbuildings: 4 x 115,000dwt LR2 product tankers being built at Sungdong Shipbuilding & Marine Engineering Co., Ltd, Korea (“Sungdong”), the company said in its press release.
The four vessels from Sungdong have contractual delivery dates ranging from January 2016 to July 2016. The net proceeds from the transaction (after a 5% sellers’ credit) will be USD 188,100,000.
Under the agreements, the Sungdong Vessels will be purchased by Ocean Yield from the company on their respective deliveries from Sungdong. Navig8 has entered into 13-year bareboat charters for the Sungdong vessels, commencing from said deliveries. Navig8 has purchase options to re-acquire the Sungdong Vessels during the charter period, with the first such option exercisable on the seventh anniversary of each Sungdong Vessel delivery. Under the sale and leaseback agreements, Ocean Yield will also provide financing for pre-delivery instalments for the Sungdong Vessels.
Separately, Navig8 has entered into sale and leaseback agreements with CSSC (Hong Kong) Shipping Company Limited (“CSSC”) for eight newbuildings: 8 x 113,000dwt LR2 product tankers being built at CSSC Offshore & Marine Engineering (Group) Company Limited (formerly known as Guangzhou Shipyard International Company Limited), China (“CSSC Offshore”).
The eight vessels from CSSC Offshore are currently scheduled for delivery between March 2016 to November 2016 (together, the “CSSC Vessels”). The net proceeds from the transaction (after a 20% sellers’ credit) will be USD 304,000,000.
Under the agreements, the CSSC Vessels will be purchased by CSSC on their respective deliveries from CSSC Offshore. The Company has entered into 10-year bareboat charters for the CSSC Vessels, commencing from said deliveries. The Company has purchase options to re-acquire the CSSC Vessels during the charter period, with the first such option exercisable on the fourth anniversary of each CSSC Vessel delivery. Under the sale and leaseback agreements, CSSC will also fund pre-delivery instalments for the CSSC Vessels.
