China’s financial lessor AVIC International Leasing has been revealed as the financier for five Navios Maritime Acquisition product tankers.
AVIC International Leasing entered into USD 103.2 million sale and lease back agreements with Navios Acquisition in March and April 2019.
The shipowner signed the financing deals in order to refinance USD 50.3 million outstanding on the existing facility on three product tankers and to finance two product tankers that were previously financed by Eurobank Ergasias S.A. and were fully prepaid in March 2019 by the amount of USD 32.2 million.
Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale.
The facilities will be repayable in 28 equal consecutive quarterly installments of USD 2.2 million each, with a final balloon payment of USD 39.2 million to be repaid on the last repayment date.
The agreements mature in March and April 2026 and bear interest at LIBOR plus 350 bps per annum.