Oslo-based MPC Container Ships buys five modern eco-design vessels for $136.3 million and sells 2010-built vessel for $22 million with handover in November 2023, in a strategic move to further optimise its fleet portfolio.
The shipowner spends $136.3 for buying five modern ships and sells an older one, the 2010-built vessel AS Emma (4,300 teu) for $22 million, which is subject to customary conditions for documentation.
The newly acquired vessels have existing charter contracts with top-tier counterparties, further strengthening the company’s revenue-generating capabilities, as the top management reports. A term sheet has been signed with a European bank for a $50 million senior secured facility to support the transaction.
Under the existing charters, the new vessels are expected to generate Ebitda between $30-41 million depending on when the vessels are redelivered.
The shipowner claims that the newly acquired vessels are 30% more efficient than conventional designs and “are among the top 25% of all vessels in their segment.” They have an average age of 4.6 years and will add approximately 9,250 teu to the existing fleet.
After the acquisition, MPCC’s fleet will comprise of 70 vessels, including four newbuildings, with an aggregate capacity of 153,294 teu, excluding the vessel AS Emma which will be sold.
MPC Container Ships has also negotiated the early redelivery of the vessel AS Nadia for a cash compensation. The completion of the redelivery is expected by the end of July 2023.
This company expects this transaction to advance “significant cash flows in an accretive way and bolster liquidity.” The AS Nadia will continue on a charter contract with MSC for a minimum period ending in December 2023 at a fixed charter rate of $20,000 pd.
In addition, the company has secured a lease financing with Bank of Communications (Hong Kong) Limited (BoComm) for existing fleet in the amount of $75 million.
Constantin Baack, CEO of MPCC said: “The inclusion of five young, eco-design vessels enhances the overall composition of our fleet and will increase our earnings and distribution capacity in 2023 and onwards. Moving forward, our portfolio optimization strategy will remain centered around upgrading our existing vessels, acquiring modern eco tonnage as well as investing in newbuildings with premium earnings capabilities and lower emissions.”