Sale-and-leaseback specialist Ocean Yield says a new charter swap with Interlink of Bermuda is good for both sides.
One analyst called the deal to replace 2015-built handysize bulkers with newer models a “free lunch”.
Norway's Ocean Yield sold the 40,000-dwt Interlink Sagacity and Interlink Priority (both built 2015) at the end of 2015.
They were replaced in a five-year bareboat charter to Carlyle Group-owned Interlink by the 40,000-dwt Interlink Celerity and Interlink Fortuity (both built 2017).
“We agreed to replace these vessels with the 2017-built system vessels in the charter agreements. No other changes were made to the commercial terms,” Ocean Yield chief executive Andreas Rode told a conference call.
“With respect to the asset swap and whether or not we get a free lunch, so you’re right, we are enhancing the risk profile.
“It’s fair to say that Interlink is a long-standing client of ours, and really swapping these two vessels into the facility that they have with us made sense for them as the vessels were unencumbered and as such should fit well into their financing plan.”
Chief financial officer Eirik Eide also told the call that the company has refinanced and upsized three secured loan facilities, which will give an overall positive liquidity effect of $26m.
A total of $13m closed after the end of the first quarter.
Newbuilding finance being put in place
Progress is being made on funding its newbuildings too.
Long-term financing has been completed on all three container ships being built for MPC Capital for delivery this year.
A term sheet has also been signed for the two 36,000-cbm ethylene carriers that are long-term chartered to Braskem. They will be delivered from China in 2024 and 2025.
Eide said: “The financing of those vessels obviously on the back of an investment grade counterparty has higher loan-to-value (LTV) than what we normally look for, and also a much longer tenor than we normally do in the banking market.
“In terms of the margin, I would say that it’s in line with what we normally see from our banks.”
The chief financial officer also said the owner is progressing well with the financing of the 10 newcastlemax dry bulk ships being built in China for charter to CMB’s Bocimar.
One bank has obtained credit approval for the financing of two vessels, and talks are ongoing over the remaining units.
“We have no near-term maturities as all the refinancings for 2023 has been taken care of,” Eide said.
