Ocean Yield announces investment in Suezmax tanker with long term charter

08 Jun 2017

Ocean Yield ASA has agreed to acquire a new Suezmax tanker for a consideration of USD 54.0 million with 14-year bareboat charter to a company owned and guaranteed by Okeanis Marine Holdings SA. The purchase price includes a seller's credit of USD 7.0 million, giving a net purchase price of USD 47.0 million. The vessel, which is built in 2017, will be delivered to Ocean Yield within June 2017. Okeanis Marine Holdings SA will have certain options to acquire the vessel during the charter period, with the first purchase option exercisable after seven years. The acquisition will be financed by a combination of debt and equity, where Ocean Yield has received an offer for a senior secured loan facility of up to USD 37.8 million with 15 years' repayment profile and 5 year tenor. Okeanis Marine Holdings SA is the ship-owning holding company of the Alafouzos family, which has 50+ years of history in shipping with long-term relations with a number of oil majors. The management company of the group is known under the name Kyklades Maritime Corp. Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce the investment in a new Suezmax tanker, as it allows us to continue to grow and further diversify our portfolio into crude tankers. The transaction fits well with our strategy to invest in modern vessels with long term charters." Company contacts: Lars Solbakken (CEO), Tel +47 24 13 01 90 Eirik Eide (CFO), Tel +47 24 13 01 91 Investor Relations contact: Marius Magelie (SVP Finance & IR), Tel +47 24 13 01 82 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.