Product tanker company d’Amico International Shipping (DIS) has through its Ireland-based subsidiary d’Amico Tankers signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of a medium-range product tanker.
The 49,990 dwt MT High Loyalty, built in 2015 by Hyundai-Mipo, secured a sale and leaseback deal with an undisclosed Japanese financing institution worth USD 28.5 million.
“Through this agreement, DIS will generate a positive net cash effect of around USd 13.3 million, strengthening our liquidity position. The vessel will be also bareboat chartered back by d’Amico Tankers for 10 years and we will have the option of repurchasing it starting from the second anniversary of its sale date, at a competitive cost of funds,” Marco Fiori, CEO of DIS, said.
The deal comes in less than a month since the company’s last sale and leaseback deal inked in July. The contract involves a medium-range product tanker vessel MT High Trust, and was signed for a consideration of USD 29.5 million.
The sale and leaseback contracts are being pursued as the company readies for the recovery from a very challenging period for the product tanker market.
DIS’ fleet comprises 58.5 double-hulled product tankers with an average age of about 7.1 years (of which 27 owned, 27.5 chartered-in and 4 bareboat chartered).
d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 3 Long Range (LR1s) product tankers expected to be delivered between Q3 2018 and Q1 2019.