Acquisition of three 10,600 TEU container vessels in combination with long term charters
Press release from Ship Finance International Limited - 22.08.2018
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the "Company") announces that it has agreed to acquire three large container vessels in combination with long term time charters to a leading container line.
The vessels are modern eco-design built in 2015 with approximately 10,600 TEU carrying capacity. The Company expects to take delivery of the vessels in the near term, and the purchase price is confidential.
The charters will run for a period of minimum 6 years, with options for the charterer to extend the charters up to 10 years. There is also a purchase option with profit split at the end of the initial period. Our fixed rate charter backlog will increase by approximately $260 million, increasing to approximately $430 million if the charter extension options are exercised. The EBITDA contribution from the vessels is estimated to approximately $35.5 million per year.
We have received an offer for a $200 million intermediary bank financing to part-finance the acquisition of these vessels. The balance will be funded by cash at hand. The Company expects to arrange a long term financing in due course.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "This acquisition highlights our strength and ability to achieve sustained growth through repeat transactions with the world's largest liner companies. We have firmly established ourselves as a quality operator of vessels, and our financial flexibility enables us execute swiftly on new transactions. Over the last five months we have added more than $800 million to our charter backlog and expect to continue increasing our fleet of vessels and charter backlog in 2018".
August 22, 2018
The Board of Directors Ship Finance International Limited Hamilton, Bermuda
Questions can be directed to Ship Finance Management AS:
Investor and Analyst Contacts: Harald Gurvin, Chief Financial Officer, Ship Finance Management AS +47 23 11 40 09 André Reppen, Senior Vice President, Ship Finance Management AS +47 23 11 40 55
Media Contact: Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS +47 23 11 40 11
About Ship Finance
Ship Finance International Limited (NYSE: SFL) has a unique track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company's fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore assets, and Ship Finance's long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.shipfinance.bm
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.