d’Amico International Shipping S.A. (Borsa Italiana: DIS) (DIS), an international marine transportation company operating in the product tanker market, announces that its operating subsidiary d’Amico Tankers D.A.C. (Ireland) (d’Amico Tankers) signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the MT High Trust, a 49,990 dwt medium-range product tanker vessel, built in 2016 by Hyundai-Mipo, South Korea for a consideration of US$ 29.5 million.

d’Amico International Shipping S.A. announces the sale and lease back of MR product tanker High Trust
Caption: Chemical/Oil Products Tanker High Trust - Image courtesy of Robert Weber

This transaction allows d’Amico Tankers to generate at the vessel’s delivery around US$ 11.9 million in cash, net of commissions and the reimbursement of the Vessel’s existing loan, contributing to the liquidity required to complete DIS’ fleet renewal program and allowing the Company to benefit from the anticipated market recovery.

In addition, through this transaction d’Amico Tankers will maintain full control of the Vessel, since a 10- year bareboat charter agreement was also concluded with the buyer, with a purchase obligation at the end of the 10th year of the charter period. Furthermore, d’Amico Tankers has the option to repurchase the Vessel, starting from the second anniversary of her sale at a competitive cost of funds.

As of today, DIS’ fleet comprises 57.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7.1 years (of which 26 owned, 27.5 chartered-in and 4 bareboat chartered). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 4 LR1s (Long Range) product tankers expected to be delivered between the second half of 2018 and Q1 2019.

Marco Fiori, Chief Executive Officer of d’Amico International Shipping, stated: “I am satisfied about the conclusion of this deal with a reputable Japanese counterparty, which strengthens our balance sheet and liquidity position. Through the sale and lease back of this MR vessel, DIS will generate a positive net cash effect of US$ 11.9 million in the third quarter of the year and at the same time, we will keep full control of the vessel through a 10 year bareboat charter contract. In addition, DIS will have the option of repurchasing the vessel starting from the second anniversary of its sale date at a competitive cost of funds”

Source: d’Amico