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 Voyager, a 45,999 dwt medium-range product tanker vessel, built in 2014 by Hyundai-Mipo, South Korea, for a consideration of US$ 25.7 million.

d’Amico International Shipping S.A announces the sale and lease-back of one of its MR vessels
Caption: Chemical/Oil Products Tanker High Voyager - Image courtesy of Nico Kemps

This transaction allows d’Amico Tankers to generate at the Vessel’s delivery around US$ 9.6 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 charter period. Furthermore, d’Amico Tankers has the option to repurchase the Vessel, at any time starting from the third anniversary of her sale with three months’ notice and at a competitive cost of funds.

As of today, DIS’ fleet comprises 49.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 6.9 years (of which 24 owned, 17.5 time-chartered-in and 8 bareboat-chartered-in. DIS also has 2 vessels in commercial management). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of one LR1 (Long Range) product tanker expected to be delivered in Q3 2019.

Paolo d’Amico, Chairman of d’Amico International Shipping, stated: “I am glad to announce the conclusion of this further deal with a reputable Japanese counterparty, which will generate net cash proceeds of approximately US$ 9.6 million for DIS, after the repayment of the existing bank loan and commissions. In line with other similar deals we have closed in the past, this transaction will allow us to keep full control of this modern MR vessel through a 10-year bareboat charter contract. Furthermore, we have very flexible purchase options, which allow us to buy the vessel back with three months’ notice starting from the third anniversary of the deal, at a competitive cost of funds”.

Source: d’Amico