d’Amico International Shipping announces the sale and lease back of one of its MR vessels

d’Amico International Shipping has announced that its operating subsidiary d’Amico Tankers D.A.C. (Ireland) has signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the MT High Loyalty, a 49,990dwt medium-range product tanker vessel, built in 2015 by Hyundai-Mipo, South Korea for a consideration of $ 28.5 million.

This transaction allows d’Amico Tankers to generate at the Vessel’s delivery around $13.3 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, starting from the second anniversary of her sale at a competitive cost of funds.

As of today, DIS’ fleet comprises 58.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7.1 years (of which 27 owned, 27.5 chartered-in and four bareboat chartered). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard, for the construction of three LR1s (Long Range) product tankers expected to be delivered between Q3 2018 and Q1 2019.

Marco Fiori, Chief Executive Officer of d’Amico International Shipping, stated: “We just concluded another sale & lease back deal with a reputable Japanese counterparty. Through this agreement, DIS will generate a positive net cash effect of around $13.3 million, strengthening our liquidity position. The vessel will be also bareboat chartered back by d’Amico Tankers for 10 years and we will have the option of repurchasing it starting from the second anniversary of its sale date, at a competitive cost of funds.”