Dorian LPG has reached a $70m sale and bareboat charter arrangement for its 2015-built 84,000 cbm carrier Concorde.
The deal resulted in net cash proceeds of $56m for the company, of which $35.1m is being used used to repay a portion of the $758 million debt financing facility that Dorian LPG entered into in March 2015.
Under the arrangement, the Concorde was delivered to its undisclosed Japanese buyer upon completion of the transaction while the company entered into a 13-year bareboat charter for the vessel.
The financing has a mandatory buyout in 2031 with early repurchase options from January 31, 2021 and carries a fixed interest rate of 4.9%.
“The performance of our fleet reflects the strength of our commercial and technical management platforms as well as the premium our modern ships earn compared to older ships. We have taken further steps to ensure the continued robustness of our balance sheet through a second sale and bareboat charter arrangement. We are cautiously optimistic about the outlook for the LPG tanker sector as industry fundamentals continue to improve,” said John Hadjipateras, chairman and CEO of Dorian LPG.