Dorian LPG Ltd., an owner and operator of modern and environmentally friendly very large gas carriers (VLGCs), has announced the successful delivery of Captain Markos, its Dual-Fuel LPG Carrier.
The vessel was delivered from Kawasaki Heavy Industries to its Japanese owner under a 13-year bareboat charter.
Captain Markos will operate in the Helios LPG Pool, a joint venture between Dorian LPG and Phoenix Tankers Pte. Ltd., a wholly-owned subsidiary of Mitsui OSK Lines Ltd.
John Hadjipateras, Chairman, President and Chief Executive Officer of Dorian LPG Ltd. said, "We are very pleased to welcome Captain Markos, which will be our first technically managed dual-fuel LPG VLGC. She is the third of four Dual-Fuel VLGCs that are scheduled for delivery to the Company during calendar 2023, each with improved economics and carbon footprints, consistent with our mission to provide safe, reliable, clean, and trouble-free transportation. We thank our Japanese partners for their role in this transaction, and we wish our seafarers fair winds and smooth seas."
Similar to our previous Japanese financings, this transaction is treated as a financing transaction and Captain Markos will be recorded as an asset on our balance sheet. Prior to the delivery of the vessel, we paid $25.0 million in cash and, upon delivery, entered into a $56 million bareboat charter financing arrangement. This debt financing has a floating interest rate of one-month SOFR plus a credit adjustment spread of .1148% (reflecting the difference between unsecured LIBOR and SOFR) and a margin of 2.475%, monthly broker commission fees of 1.25% over the 13-year term on interest and principal payments made, broker commission fees of 1.0% payable on the remaining debt outstanding at the time of the repurchase of Captain Markos, and a monthly fixed straight-line principal obligation of $0.210 million until March 31, 2028 and of $0.250 million from April 30, 2028 through the remainder of bareboat charter period with a balloon payment of $19.4 million. The Company has early buyout options beginning March 31, 2028.