• News

Ship Finance International acquires two big box ships

Written by Nick Blenkey
image description

JANUARY 2, 2019 — John Fredriksen’s Ship Finance International Limited (NYSE: SFL) closed 2018 by reporting that it had acquired two 2016-built 19,400 TEU container vessels and contracted the vessels until late 2033, or for nearly 15 years, to a leading container line on long term bareboat charters.

Ship Finance says that the contracts increase its fixed rate charter backlog by nearly $470 million and that the charterer has agreed to purchase obligations at the end of the charter period, effectively eliminating residual risk.

Ole B. Hjertaker, CEO of Ship Finance Management AS, commented: “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.”

Categories: News Tags:

Leave a Reply