International marine transportation company operating in the product tanker market d’Amico International Shipping S.A. (DIS) said 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 Trader.
The 49,990 dwt medium-range (MR) product tanker vessel is built in 2015 by Hyundai-Mipo, South Korea was sold for a consideration of US$ 27.0 million.
This transaction allows d’Amico Tankers to generate at the Vessel’s delivery around US$ 8.6 million in cash, net of commissions and the reimbursement of the Vessel’s existing loan, contributing to the liquidity required to complete DIS’ fleet renewal program and allowing the Company to benefit from the anticipated market recovery.
In addition, 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 charter period.
Furthermore, d’Amico Tankers has the option to repurchase the Vessel, at any time starting from the second anniversary of her sale with three months notice and at a competitive cost of funds.
As of today, DIS’ fleet comprises 55.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7.1 years (of which 25 owned, 19.5 chartered-in, 6 bareboat chartered and 5 in commercial management). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 2 LR1s (Long Range) product tankers expected to be delivered in Q1 2019.
Paolo d’Amico, Chairman of d’Amico International Shipping, stated: “I am satisfied about the conclusion of this further sale & lease back deal with a reputable Japanese counterparty."