Epic Gas refinances LPG carrier pair

Epic Gas refinances LPG carrier pair

Singapore-based LPG shipping company Epic Gas has completed the refinancing of 2010-built 7,200 cu m LPG carriers Epic Bali and Epic Borneo.

The ships had both been on charter from Alan Hatton-led Foreguard Shipping since 2014, and Epic Gas exercised a purchase option on the vessels. It has gone on to finance the vessels through a sale and lease back transaction with a Japanese shipowner. The bareboat charter back term is 10 years, with a purchase option from the fifth year onwards.

Epic Gas said the deal has reduced its interest and amortisation by $1.3m per annum, while Foreguard said the transaction has resulted in a “strong return”.

“Today’s transaction reflects our ongoing efforts to continuously optimise our cost of financing, driving out unnecessary cost wherever possible,” said Uta Urbaniak-Sage, CFO of Epic Gas.

Epic Gas currently owns and operates a fleet of 44 fully pressurised gas carriers.

Earlier this year, Andreas Sohmen-Pao’s BW Group took control of Epic Gas following an agreement to acquire a 54.7% stake.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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