Ocean Yield announces investment in two chemical tankers with long term charters
27 Sep 2016
Ocean Yield ASA ("Ocean Yield")has agreed to acquire two 45,000 dwt IMO II chemical carriers for a consideration of USD 35 million per vessel in combination with 12-year "hell and high" bareboat charters to Navig8 Ltd.("Navig8 Group"). The purchase price includes a seller's credit of USD 6.0 million per vessel, which will amortise to zero over the charter period and carries no interest. The two vessels, which were built in 2013, will be delivered to Ocean Yield within the end of September and November 2016 respectively. Navig8 Group will have certain options to acquire the vessels during the charter period, with the first option exercisable after five years. The acquisition will be financed by a combination of debt and equity, where Ocean Yield has received credit approved term sheet from banks at terms in line with previous transactions. Navig8 Group is a fully-integrated provider of maritime services and the world's largest independent pool and commercial management company. The group currently provides commercial management and technical management services to over 280 vessels including operation of 18 commercial pools with around 50 pool partners. Navig8 Group has significant shareholdings in Navig8 Chemical Tankers Inc, Navig8 Product Tankers Inc and Gener8 Maritime Inc. Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce the investment in the two chemical carriers as it allows us to continue to grow and diversify our portfolio, furthermore the transaction fits well with our strategy to invest in modern vessels with long term charters." For further information, please contact: Investor Relations Contact: Marius Magelie, Senior Vice President Finance & IR Phone: +47 24 13 01 82 Company Contacts: 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.