d’Amico Shipping to sell, lease back product tanker under $28m agreement

Although the purchase price is $28 million, the transaction is ultimately expected to generate about $13.4 million in cash for d’Amico, net of commissions and reimbursement of the vessel’s existing loan.    Ireland’s d’Amico Tankers, an operating subsidiary of Luxembourg-based marine transportation company d’Amico International Shipping, has signed an agreement and bareboat charter contract for the sale and leaseback of the MT High Freedom, a 49,990 deadweight-ton (DWT) medium-range product tanker vessel, built in 2014 by Hyundai-Mipo of South Korea, d’Amico confirmed Dec. 27.
   “I am glad to announce the conclusion of this further sale and lease back contract, which represents our third deal with reputable Japanese counterparties,” d’Amico International Shipping CEO Marco Fiori said, while declining to name the buyer.
   The purchase price is $28 million, but the transaction is ultimately expected to generate about $13.4 million in cash for d’Amico Tankers, net of commissions and reimbursement of the vessel’s existing loan.
   The funds will contribute to the liquidity needed to complete ongoing DIS’ fleet renewal program, d’Amico said. d’Amico Tankers has shipbuilding contracts with Hyundai Mipo Dockyard for the construction of five long range product tankers that are expected to be delivered in 2018.
   The transaction also allows d’Amico Tankers to maintain full control of the vessel via a 10-year bareboat charter agreement, with includes a purchase obligation at the end of the charter period’s 10th year. d’Amico Tankers has the option to repurchase the vessel, starting from the second anniversary of her sale.
   As of today, DIS’ fleet comprises 56.5 double-hulled product tankers with an average age of about 7.5 years. Twenty-seven are owned vessels, 26.5 chartered-in vessels and three bareboat chartered, according to d’Amico.