NYSE-listed LPG operator Dorian LPG has reached a deal to sell 2014-built VLGC Corsair for $65m as part of a sale and leaseback deal.
Revealing the deal in its latest set of results, Dorian said the sale and bareboat arrangement is expected to close this month, resulting in net cash proceeds of $52m, of which $30.1m will be used to repay a portion of a bridge loan agreement with DNB Capital.
For the second quarter of fiscal year 2018, ending September 30, Dorian posted an adjusted net loss of $12.6m compared to a $13.7m loss in the same quarter last year.
John Hadjipateras, chairman, president and CEO of Dorian LPG, commented: “Despite near term market headwinds, we continue to focus on our financial and commercial activities. The latter is reflected in our improving fleet utilization rate and the operating performance of our vessels relative to benchmarks. We have also taken further steps to enhance our financial profile through a sale and bareboat charter arrangement that improves our liquidity and has also been structured to provide us optionality to a market recovery.”