TEU Contract’s $470 Million Impact
Contracts formed by the acquisition of two 19,400 TEU vessels are projected to increase Ship Finance International Ltd.’s fixed rate charter backlog by an estimated $470 million, according to an announcement earlier this week highlighting the acquisition.
Both TEU vessels were built in 2016 and are contracted to a leading container line. Additionally, the acquisition comes with the elimination of residual risk through an agreement to purchase obligations from the charter once the charter period is expired.
CEO of Ship Finance Management AS Ole B. Hjertaker commented on the acquisition:
“This new acquisition broadens our relationship with one of the world’s largest liner companies. Over the last nine months we have added more than $1.2 billion to our charter backlog in a series of accretive acquisitions. In this case, our equity investment is limited to approximately $15 million per vessels as we have secured non-recourse lease financing with a tenure matching the charter period. We believe that our strong balance sheet and ability to source attractively priced capital will allow us to continue to grow our charter backlog and cash flow visibility going forward.”
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
Source: EIN Presswire
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