Ship Finance enters into lease financing for three boxships
Ship Finance International Limited (“Ship Finance” or the “Company”) says it has entered into lease financing agreements (each - a term of more than 10 year) totaling $270 million with an Asian-based institution to finance three 10,600 TEU container vessels acquired in 2018. The vessels are employed under long term time charters to Maersk Line until 2024, with options to extend the charters by up to four additional years.
There is an option to purchase the vessel back after six years, at expiry of the firm period of the charters to Maersk. A portion of the proceeds from the Lease Financings have been used to refinance the $200 million loan facility arranged at the time of the acquisition.
The Company also has delivered the 2002 built VLCC Front Falcon to its new owner. The sale of the vessel was previously announced in November 2018, and the net sales price was approximately $30.7 million. Following the sale of the Front Falcon, Ship Finance only has one vessel remaining from the Company’s initial fleet in 2004.
