Mobile, Alabama, headquartered International Shipholding Corporation (NYSE: ISH) announced today that it has entered into an agreement with Norwegian Car Carriers ASA for the sale of two of its international flag Pure Car Truck Carriers. The transaction is scheduled to close by the end of the first quarter and will generate proceeds of approximately $73.9 million. This transaction will realize a reportable gain of about $3.5 million in the first quarter. Proceeds will be used to pay down debt of approximately $35 million collateralized by these vessels and will strengthen ISH's position to pursue accretive growth opportunities. DnB NOR Markets, Inc. acted as exclusive advisor to the company.
Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, "We are pleased to realize a profit from this transaction. The sale of these two vessels provides us with liquidity to pay down debt as we seek further accretive opportunities to grow our operating fleet."
According to information published by Norwegian Car Carriers, the two ships are the Asian King and the Asian Emperor built at Hyundai Heavy Industries Co., South Korea in 1998 and 1999 respectively. They are car carriers with a large capacity for transportation of "high and heavy" cargo with 4 hoistable car decks and a stern ramp with 150 mt load capacity.
The two vessels are employed on a charterparty to EUKOR Car Carriers (Singapore) Pte. Ltd. The charterparty for Asian Emperor expires May 26, 2019 and the charterparty for Asian King expires December 4, 2018. EUKOR holds an option to purchase "Asian Emperor" in May 26, 2015.
Norwegian Car Carriers says the charterparties are estimated to generate in total EBITDA of $9.6 million in 2012, $12.6 million in 2013 and $11.7 million in 2014.
March 14, 2012