Ship Finance International Acquires Fifteen, Sells One Boxship

Image Courtesy: Ship Finance International

Bermuda-based shipowner Ship Finance International has decided to acquire a fleet of fifteen feeder-size container vessels and sell a 1,700 TEU boxship.

As informed, the fifteen vessels, ranging from 1,100 TEU to 4,400 TEU, will be acquired in combination with long-term bareboat charters to an undisclosed container line.

The purchase price is confidential, but close to recycling value of the vessels. The charter term will be seven years from delivery, with subsequent purchase obligations by the charterer, Ship Finance said.

Delivery of the vessels is expected in April and their aggregate EBITDA contribution is estimated to be approximately USD 20 million per year, according to the company.

What is more, Ship Finance International has agreed to sell the 1,700 TEU container vessel SFL Avon to an unnamed company. This vessel has been operated in the short-term charter market and net sales proceeds will be approximately USD 12.5 million.

“Delivery to the new owner is expected in April 2018, and we expect a minor book gain in connection with the sale,” Ship Finance International said.

“This transaction offers an attractive cash flow from a strong counterpart and with limited downside risk. The SFL Avon was our only container vessel operated in the short-term charter market, and in light of the recent upswing in values in the sector we have decided to sell the vessel as we evaluate various growth prospects,” Ole B. Hjertaker, CEO of Ship Finance Management AS, commented.

“We are seeing increasing opportunities to deploy capital in 2018 and we remain focused on growing our fleet and charter backlog,” Hjertaker added.

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