Costamare and private equity firm York Capital have jointly ordered 3,800-teu containerships from China’s Jiangsu New Yangzi Shipbuilding.
After their respective deliveries in the first and second quarters in 2018, the two vessels will commence seven-year timecharters to Hamburg Süd.
Costamare said the newbuilding contracts are expected to be financed with cash from operations and debt, having signed a loan term sheet “with a leading Asian financial institution”.
NYSE-listed Costamare will have 49% ownership of the new boxships, with York Capital owning a 51% stake.
“The completion of our latest transaction marks a major milestone in our highly valued relationship with Hamburg Süd. In a challenging market environment we will continue to source and execute transactions, which will benefit our shareholders,” said Gregory Zikos, Costamare’s CFO, in a statement released today.
The newbuildings mark the next phase of the two companies’ cooperation in small boxships. On October 22, Costamare and York Capital announced the purchase of two small containerships for a total of $12.5m.
Eighteen of Costamare’s containerships, including 12 newbuildings, are owned by vessel-owning joint-venture companies with York Capital, in which Costamare holds a minority equity interest.
In addition to those announced today, the NYSE-listed company’s newbuildings consist of five 14,000-teu ultra-large containerships and seven 11,000-teu boxships.