The Stamford, Connecticut-based Dorian LPG has reached a sale and bareboat charter arrangement for its 84,000 cbm carrier Concorde.
The liquified petroleum gas shipping company entered into the USD 70 million deal that closed on January 31, 2018, resulting in net cash proceeds of USD 56 million.
"We have entered into a sale and bareboat charter arrangement that closed on January 31, 2018 for the Concorde, which was previously financed under the 2015 Debt Facility. The net proceeds from the transaction amounted to $56.0 million, of which we repaid approximately $35.1 million under the 2015 Debt Facility," said a statement from the company.
Under this arrangement, the Concorde was delivered to the buyer upon completion of the transaction and, on the same day, it entered into a 13-year bareboat charter for the vessel.
Dorian has a purchase option to re-acquire the Concorde from the third anniversary of the commencement of the bareboat charter through the end of the bareboat charter.
The LPG firm will continue to technically manage, commercially charter, and operate the vessel. The bareboat charter carries a 4.9% fixed interest rate for the duration of the contract and has a 17.3-year loan profile.
Meanwhile, Dorian has reported fiscal third-quarter profit of $1.7 million. It has net income of 3 cents per share. Losses, adjusted for non-recurring gains, were 4 cents per share. The shipping company posted revenue of $44.5 million in the period.