Ocean Yield announces investment in two handysize dry bulk vessels with long term charters
15 Feb 2018
Ocean Yield ASA ("Ocean Yield" or the "Company") is pleased to announce that 100% owned subsidiaries of the Company has agreed to acquire two 2018 built handysize dry bulk vessels with 12-year bareboat charters to companies owned and guaranteed by Louis Dreyfus Armateurs Group ("LDA"). The net cash purchase price is USD 18 million per vessel after a seller's credit. Both vessels are expected to be delivered to the Company during March 2018. LDA has options to acquire the vessels during the charter period, with the first purchase option exercisable after five years in addition to an obligation to repurchase the vessels at the end of year 12. LDA is a French family group engaged in maritime transportation and services and founded more than 160 years ago. The group is a major player of dry bulk, marine and port logistics, transportation of heavy and specialized cargoes, in addition to having diversified activities in marine industrial services such as submarine cable laying and marine renewable energies. Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce our first investment in the dry bulk sector with two modern handysize carriers with long-term charters to Louis Dreyfus Armateurs. With improved earnings in the dry bulk market, we see potential for more transactions in this sector going forward." 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 Company information: Ocean Yield ASA 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.