Grindrod Shipping Holdings has worked some magic with Island View Shipping (IVS) Bulk to prime its coffers and better its fleet.
The Martyn Wade-led player in drybulk and tanker shipping sectors has pulled several levers with the subsidiary throughout the month, starting off with an IVS ultramax.
Grindrod on 3 June took delivery of the 60,200-dwt IVS Phoenix (built 2019) and is chartering it in from owner IVS Bulk for at least three years with the option to add two more years.
On 20 June, Grindrod sold part of a loan it had given to one of its joint venture partners for $7.5m.
It also recently bought 33,100-dwt IVS Knot (built 2010) for $13m in a bareboat sale-and-leaseback deal lasting up to 11 years.
Grindrod may sell the ship back to IVS after two years but IVS may sell the Knot back to Grindrod at the end of the 11-year bareboat charter.
The vessel was previously partial security for Grindrod's $100m senior secured credit facility but was released from the security package once the sale-and-leaseback deal closed.
Grindrod made about $6.3m in cash off the sale after settling debt tied to the vessel on 26 June.
IVS has also closed the $7.8m sale of IVS Kawana (built 2005) after a 30 April delivery, and expects to deliver 16,500-dwt tanker Umgeni (built 2011), sold for $8.9m, on 30 June.
“We are delighted to have recently taken delivery of the IVS Phoenix and concluding the sale and leaseback of the IVS Knot, which represents a new source of funding for the Company," chief executive Martyn Wade said.
"The sale-and-leaseback transaction adds a new dimension to our longstanding relationship and status within the Japanese market and we believe this affords the Company the potential to leverage this further.
"Through the IVS Knot and the sale of the joint venture loan, Grindrod Shipping has strengthened its liquidity by approximately $13.8 million without divesting control of any core assets.”
Grindrod and IVS Bulk, which Grindrod acquired in 1999, also agreed on 13 June to extend their joint venture to 30 September from 30 June.
Grindrod Shipping owns and operates 32 bulkers under the brand Island View Shipping brand. It also operates 10 tankers under Unicorn Shipping.
