Ocean Yield on track for further growth - Closes transaction for two newbuilding car carriers with 12-year charters to Höegh Autoliners
16 Sep 2013
Ocean Yield ASA has entered into newbuilding contracts for two Pure Car Truck Carriers (PCTC) of 8,500 car capacity with Xiamen Shipbuilding Industry Co. Ltd ("Xiamen"). The vessels will be delivered in January and April 2016, and will after delivery be chartered on 12-year "hell and high water" bareboat charter contracts to Höegh Autoliners ("Höegh"). Höegh is regarded as one of the global leaders in deep sea car transportation and owns and operates around 60 PCTC vessels in a global trade system. Höegh already has four vessels of equal design on order from Xiamen scheduled for delivery in 2015 and will be responsible for the shipbuilding supervision. Höegh will have certain options to acquire the vessels during the bareboat charter, with the first option after five years.Ocean Yield has secured long-term debt financing for approximately 70 per cent of the investment. The remaining amount will be funded by equity. Total delivered cost for the two vessels will be approximately USD 137 million and Ocean Yield's estimated EBITDA contract backlog including these contracts at the end of Q3 2013 will be approximately USD 1.79 billion.Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "Ocean Yield is pleased to further expand the relationship with Höegh Autoliners. By this transaction we continue to increase our contract backlog of charters to leading and reputable counterparties and thereby further strengthen our long-term dividend capacity." For further information, please contact: Lars Solbakken, CEO of Ocean Yield ASA Phone: +47 24 13 01 90 E-mail: firstname.lastname@example.org About Ocean Yield:Ocean Yield is a ship owning company with investments within oil-service and industrial shipping. The company focuses on modern assets with long-term charters to solid counterparties. 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 growing dividends to its shareholders. The company's asset base including the abovementioned transaction consists of six offshore vessels and four newbuilding Pure Car Truck Carriers (PCTC), all with long term charters. In addition the company owns bonds in American Shipping Company. Ocean Yield was established in March 2012 and was listed on the Oslo Stock Exchange in July 2013.This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.