- Ship Finance International (NYSE:SFL) agreed to acquire four large container vessels with approximately 14,000 TEU carrying capacity for cash plus ~4M newly issued shares in Ship Finance.
- The cash consideration is financed with cash on the balance sheet and a $320M unsecured loan facility provided by an affiliate of Hemen Holding Ltd.
- The Company expects to take delivery of the vessels in the near term.
- The time-charters to a leading Asia-based container line run until 2024, with options to extend the charters by 18 additional months.
- Fixed-rate charter backlog will increase by nearly $450M and the EBITDA contribution from these new vessels is estimated to ~$60M per year.
- Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "This acquisition highlights Ship Finance's strength and ability to achieve sustained growth and continued diversification. We are deploying a part of the recently raised capital, but still have capacity for new accretive opportunities. Over the last two months we have added nearly $600 million to our charter backlog and expect to continue increasing our fleet of vessels and charter backlog in 2018".
- Press Release
- Now read: 7 Reasons It's Time To Take A Flyer On Global Ship Lease
Original article