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.