Navig8 sells chemical tanker newbuildings to Ocean Yield, leases back

Navig8 sells chemical tanker newbuildings to Ocean Yield, leases back

London: Norway’s Ocean Yield has bought eight chemical tanker newbuildings for $306.8m from Navig8 Chemical Tankers, which will lease the vessels back on 15-year bareboat charters.

The first four vessels are 37,000-dwt IMO II chemical carriers, being built by Hyundai Mipo in South Korea, and are scheduled for delivery in Q2 and Q3 this year. STX Korea is building the other four vessels, which are 49,000-dwt IMO II chemical carriers, scheduled for delivery in Q1 to Q3, 2016.

Navig8 Chemical Tankers has options to buy the vessels during the charter period, with the first option exercisable after five years.

Ocean Yield says it will provide Navig8 Chemical Tankers with a pre-delivery loan matching the remaining yard installments for the STX vessels.

Ocean Yield has secured fully underwritten bank financing for about 69% of the gross purchase price, plus a seller’s credit of about 10% and the remaining amount with other debt and existing cash.

“We are pleased to announce the investment in eight newbuilding chemical tankers as it allows us to further diversify our portfolio of vessels and the transaction fits very well with our strategy to invest in modern vessels with long-term charters,” said Lars Solbakken, Ocean Yield’s CEO.

“Due to our strong balance sheet the transaction is done without raising any new equity and the new investment will therefore have a very positive effect on both earnings and dividend capacity per share.”

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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