Costamare Inc. (NYSE: CMRE) announced today the acquisition of the 60% equity interest of York Capital in five 2016 - built 14,000 TEU containerships. The acquisition brings the Company’s ownership interest in these five vessels to 100%.
The five vessels were initially contracted as new buildings under the joint venture with York Capital in 2014. The vessels currently operate under long-term charters to Evergreen expiring in 2026. The terms of the acquisition include the option to defer 75% of the purchase price for up to 18 months after closing, as well as the option to pay part of the purchase price with shares of the Company’s common stock.
Management Commentary Gregory Zikos, Chief Financial Officer of the Company, said: “We are pleased with the conclusion of this transaction, which underlines our excellent relationship with York Capital. The deal provides a successful exit path in this investment for our partner. At the same time, the joint venture continues to own another 12 vessels and our relationship with York Capital is ongoing. The transaction is highly accretive to our earnings providing us with incremental contracted revenues north of US $380 million and further extending our contract coverage to approximately 4 years.”