d’Amico International Shipping S.A., 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), exercised its purchase option on the MT High Priority, a 46,847 dwt MR product tanker vessel, built in 2005 by Nakai Zosen, Japan, for a consideration of US$ 9.7 million.
The Vessel was sold and leased back by d’Amico Tankers in 2017, for a 5-year period, with purchase options starting from the 2nd anniversary date and a purchase obligation at the end of the 5th year. As of today, DIS’ fleet comprises 39 double-hulled product tankers (MR, Handysize and LR1, of which 19 owned, 11 chartered-in and 9 bareboat chartered-in) with an average age of about 6.4 years for its owned and bareboat chartered-in vessels.
Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, stated: “I am pleased to announce the exercise of our purchase option on one of d’Amico Tankers’ leased vessels, a transaction fully in line with our strategy of deleveraging DIS’ balance sheet and reducing its financial break-even. In fact, the existing lease will be substituted with a bank-loan financing at a much lower leverage and at a substantially lower cost of debt. We were able to take advantage of this opportunity thanks to the sound financial and liquidity position we have reached today, as the result of the strong freight markets of the first half of 2020, in addition to the proceeds derived from the sale of most of our oldest ships over the last few years. As well as improving our cash resources, the sale of our oldest tonnage allows us today to operate a primarily ‘Eco’ fleet which is amongst the most modern in the market”.
Source: d'Amico