MPC Container Ships (MPCC) has pounced on five modern feeder boxships being sold by UK-based Lomar Shipping for $136.4m.
They are the 1,750-teu London Trader, Madrid Trader, Trieste Trader and B Trader (all built 2019) and 2,200-teu Queen Esther (built 2016). These have been renamed AS Stine, AS Silje, AS Simone, AS Sabine and AS Anne. All have charters attached.
MPCC expects the ships will generate Ebitda of between $30m and $41m, depending on when they are redelivered.
The deal is part of a portfolio optimisation in which the company is selling one of its traditional panamax boxships, the 4,256-teu AS Emma (built 2010) for $22m. Handover is scheduled for November.
The deals leave the Oslo-listed, Hamburg-based shipowner with a fleet of 70 vessels, including four newbuildings, with an aggregate capacity of 153,294 teu.
“We are excited to announce new accretive measures, which align perfectly with our ongoing portfolio optimisation strategy,” said chief executive Constantin Baack.
“The inclusion of five young, eco-design vessels enhances the overall composition of our fleet and will increase our earnings and distribution capacity in 2023 and onwards.
“Moving forward, our portfolio optimisation strategy will remain centred around upgrading our existing vessels, acquiring modern eco tonnage as well as investing in newbuildings with premium earnings capabilities and lower emissions.”
As a result of the deal, MPCC has raised its financial guidance for the year.
Operating revenues are lifted to $650m to $670m from $610m to $630m. Ebitda guidance is raised to $450m to $475m from $420m to $450m.
Portfolio optimisation
MPCC has signed a term sheet at “attractive” terms with a European bank for a $50m senior secured facility to support the transaction.
It has also secured a competitive lease financing with Bank of Communications (Hong Kong) totalling $75m, which is secured by 12 previously unencumbered vessels.
The financing of the acquisition has been “carefully structured to maintain a conservative leverage ratio”, which will increase from 15.2% to about 25%.
MPCC said it will maintain low financial leverage and high financial flexibility, as 22 vessels will remain unencumbered on the balance sheet.
As announced earlier this year, the company has negotiated the early redelivery of the 3,586-teu AS Nadia (built 2007), in line with a cash compensation from US-based Pasha Hawaii.
The vessel is on charter to MSC Mediterranean Shipping Company until December at a rate of $20,000 per day.
