Navig8 Chemical Tankers Inc. announced on Thursday (Apr 7) that it has entered into sale and leaseback agreements with Bank of Communications Financial Leasing Co. Ltd ("BCFL") for four IMO2 49,000 DWT Interline coated medium range tankers being built at STX Offshore & Shipbuilding Co., Ltd, Korea ("STX").

Navig8 Chemical Tankers enters into Sale and Leaseback Agreements with BCFL for four oil products tankers

Navig8 49 000-dwt chemical/oil products tanker Navig8 Victoria - Image: Peter Kuiper

The four vessels from STX (together, the "STX Vessels") have contractual delivery dates ranging from end March 2017 to end June 2017.

Under the sale and leaseback agreements, BCFL will provide funding for pre-delivery as well as the delivery instalments for the STX Vessels. The net proceeds from the transaction (after a 12% sellers' credit) will be USD 140,025,600.

The STX Vessels will be delivered to BCFL on their respective deliveries from STX. The Company has entered into 10-year bareboat charters for the STX Vessels, commencing upon their respective deliveries. The Company has purchase options to re-acquire the STX Vessels during the charter period, with the first such option exercisable on the fourth anniversary of each STX Vessel delivery.

Source: Navig8 Chemical Tankers