Amendments to charter agreements with Höegh Autoliners

21 Dec 2015
Ocean Yield ASA has agreed to certain amendments to the charter agreements with Höegh Autoliners ("Höegh") for four PCTC vessels on long term charter. -Asset swap - newbuilding 8,500 CEU vessels. Ocean Yield currently has two newbuilding PCTC vessels of 8,500 CEU capacity under construction at Xiamen Shipbuilding Industry Co. Ltd. The vessels are part of a series of six vessels, where Höegh has ordered four newbuildings and Ocean Yield two. Upon delivery, the vessels will be chartered out to Höegh on 12-year bareboat charters. Ocean Yield has agreed to sell its two vessels to Höegh and acquire two newbuilding sister vessels with earlier delivery dates from Höegh. The vessels are expected to be delivered in February and May 2016, following a delay in the original newbuilding schedule. New charter agreements have been entered into between Ocean Yield and Höegh for these vessels for periods of 12-years. The sale and purchase of vessels will generate a positive cash effect of USD 15.6 million for Ocean Yield in 2016. The transaction is not expected to have any material profit & loss effect. -Change from fixed to floating rate leases for four vessels Ocean Yield has agreed with Höegh Autoliners that the charter rates for the two newbuilding 8,500 CEU vessels and the two 6,500 CEU vessels "Höegh Jacksonville" and "Höegh Jeddah" will be changed from fixed interest rate basis to floating interest rate basis. Based on the current forward LIBOR interest rates, there will be no change in the underlying cash flow for Ocean Yield. For further information, please contact: Lars Solbakken, CEO of Ocean Yield ASA Phone: +47 24 13 01 90 E-mail: Eirik Eide, CFO of Ocean Yield ASA Phone: +47 24 13 01 91 E-mail: About Ocean Yield: Ocean Yield is a ship owning company with investments within shipping and oil-service. The company focuses on modern assets with 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 and increasing quarterly dividends to its shareholders. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.