D’Amico International Shipping nets $13m from another sale and leaseback

D’Amico International Shipping subsidiary d’Amico Tankers has signed an agreement for the sale and leaseback of 2015-built medium-range product tanker High Freedom.

The South Korean built vessel was sold for $28m, and the transaction will see d’Amico Tankers generate around $13.4m in cash after the reimbursement of the vessel’s loan. The funds will contribute to the liquidity required for the company’s fleet renewal program.

D’Amico Tankers will maintain full control of the vessel via a 10-year bareboat charter agreement which includes a purchase obligation at the end of the tenth year. There are also options to repurchase the vessel after the second year of the charter.

Marco Fiori, chief executive officer of d’Amico International Shipping, commented: “I am glad to announce the conclusion of this further sale and lease back contract, which represents our third deal with reputable Japanese counterparties. This transaction will generate a positive net cash effect of US$13.4 million for DIS in January 2018, improving the company’s liquidity position in view of the completion of our newbuilding plan. At the same time, our Company will keep full control of this vessel through a 10 year bareboat charter contract and will have the option of repurchasing it starting from the second anniversary of its sale date at a competitive cost of funds.”