Ship Finance International Ltd., a shipowning company that is affiliated with various companies controlled by the shipping magnate John Fredriksen, announced it has agreed to acquire two car carriers.
The Japan-built vessels have a capacity of about 6,500 car equivalent units (CEUs) and were built in 2005 and 2006, respectively.
Ship Finance said the vessels will be time-chartered to an investment grade logistics company, publicly listed in Asia. The charter period will be five years, adding about $85 million to its charter backlog. It said it expected delivery of the vessels will be in October and November.
"The funding of the vessels will be a combination of equity and loans, and Ship Finance has already received indications for 70 percent financing of the purchase price at favorable terms. The aggregate net cash flow after estimated operating expenses, interests and loan amortization is projected to be approximately $4.8 million in aggregate per year, or approximately 20 percent annual return on invested equity during the charter period," the company said.
There are 68 vessels in the company's fleet, including 25 crude oil tankers (VLCC and Suezmax), two chemical tankers, three oil/bulk/ore vessels, 11 dry bulk carriers including two newbuildings, 15 container vessels including four newbuildings, six offshore supply vessels, one jack-up drilling rig, one ultra-deepwater drillship, two ultra-deepwater semi-submersible drilling rigs and two car carriers. - Chris Dupin