Norway’s Gram Car Carriers (GCC) has secured a $35m loan to buy back the 6,700 ceu panamax vessel Viking Bravery currently under sale and leaseback deal with CSSC Shipping.
The Oslo and OTC-listed tonnage provider has taken out the loan priced at SOFR +1.65% from DekaBank Deutsche Girozentrale with a maturity that matches the duration of the vessel’s current charter contract.
The Viking Bravery has since January 2022 been financed with lease debt priced at SOFR +4.26%. The financial leasing unit of China State Shipbuilding Corporation is also financing the 2015-built Viking Adventure under a similar 96-month bareboat charter package and a purchase obligation upon its expiration.
Record car trade volumes by sea are on track to stand 12% above pre-covid levels this year, and 19% above in car-miles, according to the latest projections from Clarksons Research, with car carriers being one of the best performing shipping sectors this year.
“We have successfully rechartered our fleet on long-term contracts in a strong car shipping market, building a record revenue backlog and long-term cash flow visibility. The Viking Bravery refinancing demonstrates that our robust financial position and credit quality is appreciated by leading credit institutions,” said Georg A. Whist, the CEO of GCC.
