Ocean Yield ASA ("Ocean Yield") has agreed to acquire a 49.5% equity interest in six newbuilding container vessels which are owned by Quantum Pacific Shipping and are on 15-year bareboat charters to a major European container line.
The vessels, with capacity of about 19,500 TEU, are under construction at Samsung Heavy Industries, South Korea and are scheduled for delivery between June 2016 and February 2017. Ocean Yield's equity investment in the transaction will be approximately USD 162 million in total. Bank financing has already been arranged with international banks at competitive terms. Financing levels are in line with previous transactions and the debt will be non-recourse to Ocean Yield.
Ocean Yield's equity portion of the investment will be funded by own cash and a drawing facility from Aker ASA of NOK 1,000 million with maturity in February 2018, corresponding with the maturity of the bonds held by Ocean Yield in American Shipping Company. The loan carries an interest rate of NIBOR + 4.5% p.a.
Quantum Pacific Shipping is a leading private shipowner with a diversified fleet of more than 115 vessels and a successful track-record spanning over 60 years. It is part of the global Quantum Pacific Group whose interests span a diverse set of industries including energy, natural resources, oilfield services, automotive as well as shipping.
Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce our largest investment so far and the entry into the container segment. We are excited about the collaboration with Quantum Pacific Shipping, a group with extensive experience in the container segment and an excellent reputation. This transaction will contribute to further diversification of our charter portfolio into a new segment. Following this transaction, the charter backlog as of Q2 2016 stands at approximately USD 3.3 billion. "
Pareto Securities has acted as Sole Advisor in the transaction.
For further information, please contact:
Investor Relations Contact:
Marius Magelie, Senior Vice President Finance & IR Phone: +47 24 13 01 82
Lars Solbakken, CEO of Ocean Yield ASA Phone: +47 24 13 01 90
Eirik Eide, CFO of Ocean Yield ASA Phone: +47 24 13 01 91
About Ocean Yield:
Ocean Yield is a ship owning company with investments in vessels on long-term charters. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity. Ocean Yield has an ambition to pay attractive quarterly dividends to its shareholders.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.