Limassol-based Pelagic Credit has entered into definitive agreements for a sale-and-leaseback investment comprising three handysize bulk carriers, with an aggregate transaction value of $47.4m.
The investment, which represents Pelagic Credit’s first transaction in the dry bulk sector, comes with a seven-year firm bareboat charter.
“The transaction is structured as a sale-and-bareboat financing whereby the company will acquire the vessels and immediately charter them back to a wholly owned subsidiary of the Hartmann Group under a come-hell-or-high-water bareboat charter for a firm period of seven years,” Pelagic Credit said in a release.
The charter includes an option for the charterer to purchase the vessels after five years and a purchase obligation at maturity.
The vessels are further employed by the Hartmann Group under long-term time charters with a leading dry bulk shipping company.
The transaction is expected to increase the company’s total contracted gross bareboat charter backlog by approximately $107.1m (firm) and $115.6m (including options) following closing.
The company said intends to finance the investment post-closing through a senior secured credit facility, reducing its net capital investment to approximately $10.5m.
The transaction is expected to close in the coming weeks, subject to customary closing conditions.
