Navig8 Chemical Tankers Inc. (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced that it has entered into sale and leaseback agreements with AVIC International Leasing Co., Ltd (Avic) for two of the Company’s IMO2 37,000 DWT Interline coated tankers.

Navig8 Chemical Tankers enters into sale and leaseback agreements with AVIC International for two 37,000-dwt product oil/chemical tankers

The net proceeds from the transaction were $52,400,000. A portion of the proceeds was utilized to repay existing loans used to finance the Vessels’ newbuilding contracts under the multi-bank loan facility announced by the Company on February 3, 2015.

Under the sale and leaseback agreements, the Vessels were sold and delivered to Avic. The Company has entered into 10-year bareboat charters with Avic for the Vessels. The Company has purchase options to re-acquire the vessels during the charter period, with the first such option exercisable on the second anniversary of the date of delivery of each Vessel to Avic, and obligations to repurchase the Vessels at the end of the charter period.

Source: Navig8 Chemical Tankers