Ship Finance International to acquire eight Capesize dry-bulk carriers
Ship Finance International (SFL) has agreed to purchase eight Capesize dry-bulk carriers from subsidiaries of dry-bulk shipping company Golden Ocean Group, in a $272m deal.
Each vessel cost $34m, and are named the Golden Beijing, the Golden Zhoushan, the Golden Magnum, the Battersea, the Belgravia, the Golden Zheijang, the Golden Future and the KSL China.
Ship Finance Management CEO Ole B. Hjertaker said: "We are pleased to announce an acquisition of vessels in combination with long-term charters to a leading company in the dry-bulk market.
"We believe the entry point is attractive and there could be significant additional value in the profit sharing agreement over time."
The newly acquired vessel was constructed in Korea and China between 2009 and 2013. The delivery of the vessels is expected to be within July this year.
SFL expects a financing amount of approximately $22m per vessel, or around $176m in total.
These vessels will be chartered on a time-charter basis to a subsidiary of Golden Ocean for a period of ten years.
According to the company, its charter backlog will increase by nearly $500m and aggregate annual EBITDA contribution from the vessels is estimated to more than $30m on average during the first seven years of the charter.
Golden Ocean is primarily operating in the Capesize and Panamax market segments. The company has a market capitalisation of approximately $1bn.