Dorian LPG Agrees Sale and Leaseback for Concorde

Illustration; Image Courtesy: Dorian LPG

Owner and operator of modern very large gas carriers Dorian LPG has reached a sale and bareboat charter arrangement for its 84,000 cbm carrier Concorde.

The company entered into the USD 70 million deal that closed on January 31, 2018, resulting in net cash proceeds of USD 56 million. Out of the amount, USD 35.1 million was used to repay a portion of the outstanding principal on the USD 758 million debt financing facility that Dorian LPG entered into in March 2015.

Under the arrangement, the Concorde was delivered to its undisclosed buyer upon completion of the transaction and, on the same day, the company entered into a 13-year bareboat charter for the vessel.

Dorian LPG 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 company said it would 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.

The Concorde Japanese Financing has a mandatory buyout in 2031 with early repurchase options from January 31, 2021 and carries a fixed interest rate of 4.9%.

Dorian LPG unveiled the transaction as part of its third quarter fiscal year 2018 report, in which it said that its net income stood at USD 1.7 million for the three months ended December 31, 2017, compared to a net income of USD 5 million reported in the same quarter a year earlier.

For the first nine months of the fiscal year, the company said that its net loss reached USD 16.9 million, widening significantly from a net loss of USD 3.4 million reported in the same period of the previous year.

Revenues for the quarter increased to USD 44.5 million, compared to USD 35.7 million seen in the previous year’s quarter. For the nine-month period ended December 31, 2017, Dorian LPG’s revenues were at USD 120.3 million, increasing from USD 119.8 reported a year earlier.

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