Frontline clinches $544m suezmax lease financing with ICBC Leasing
John Fredriksen’s Frontline has signed a sale and leaseback agreement with China’s ICBC Financial Leasing to fund the acquisition of ten suezmax tankers.
The lease financing has a tenor of seven years and an amortisation profile of 17.8 years, including purchase options for Frontline throughout the term and a purchase obligation at the end of the term.
The proceeds of the lease financing will be used to fund the acquisition of ten 2019-built suezmax tankers the company agreed to acquire from Trafigura last year.
“We are very pleased to have signed the Lease Financing with ICBCL, which marks an important transaction between ICBCL and Frontline. This transaction extends our capital sources at a very attractive capital cost, maintains our industry leading cash breakeven rates and maximizes potential cash flow per share after debt service,” said Inger Klemp, CEO of Frontline Management.
