OCTOBER 4, 2016 — Concordia Maritime is selling the IMOIIMAX tanker Stena Image to a large Japanese financial institution. The transaction is a sale and leaseback agreement, and the vessel will be chartered back to Concordia Maritime on a bareboat basis for eight years, with annual purchase options from year four onwards.
The sale price is $37.5 million and delivery to the buyer is scheduled for mid-October.
Kim Ullman, CEO of Concordia Maritime, called the deal "a step on the way to preparing ourselves for a potentially subdued market situation," that at the same time positions the company to be able to act on any good business opportunities that may arise.
"We are very happy with the IMOIIMAX concept and the agreement now being signed allows us to continue employing the vessel in the successful Stena Weco Pool for many years to come," says Mr. Ullman. "The terms of the transaction are competitive and will have a substantial positive cash effect. Sale and purchase of vessels is an important element of our business model and this transaction marks our entrance into a competitive financing market in Japan as alternative source of funding going forward .
"We are currently reviewing the possibility of entering into similar arrangements for a further one or more vessels in our fleet," says the company's CFO, Ola Helgesson.
Fearnley Securities AS acted as sole arranger and financial advisor to the company for the transaction.