Ocean Yield has acquired two China-built ultramaxes from Scorpio Bulkers, which will be leased back to the Monaco-based company.
The 63,700-dwt bulk carriers SBI Libra and SBI Virgo (both built 2017) will be acquired for $42m enbloc, net of seller's credit, the companies said on Monday.
Both vessels will be placed on 11-year bareboat charters to the seller, during which time Scorpio Bulkers will have purchase options beginning at the end of the fourth year.
Ocean Yield has committed to financing up to $1.5m per vessel for scrubber installations, with the balance to be covered by New York-liste Scorpio. The total cost of each installation has not been disclosed. The ships will be delivered to the buyer this quarter.
The transaction marks a diversification of Ocean Yield's current 58-vessel fleet, which includes only seven bulk carriers, all of which are handysizes.
Lars Solbakken, Ocean Yield's chief executive, said his company was "delighted to expand and further diversify our portfolio with the investment".
While Scorpio Bulkers is a new counterparty for Kjell Inge Rokke's OceanYield, the Oslo-listed company has tankers in its portfolio on leaseback deals with Scorpio Tankers.
Those transactions were in place when Scorpio Tankers bought Navig8 Product Tankers in 2017.
Scorpio's cash drive
This is the third sale and leaseback transaction Scorpio Bulkers has completed so far this year, as part of its short-term strategy to improve its cash position.
The company said it expects to unlock $17m in liquidity when the transaction with Ocean Yield closes this quarter.
Some $14m of this cash will be spent on repaying outstanding debt plus up to $3m on financing scrubber installation.
In early March, Scorpio Bulkers completed a sale and leaseback deal with China's CMB Financial Leasing for three ultramax and four kamsarmax bulk carriers, together worth $150.3m.
February saw Scorpio release $6.9m in cash through a sale and leaseback deal with an unnamed counterparty for the Japanese-built kamsarmax SBI Samba (built 2015).
Ocean Yield has been active in sale and leaseback transactions — as a buyer.
Most recently, Ocean Yield acquired and leased back a suezmax from Okeanis Eco Tankers in January.
Last year, saw Ocean Yield ink leaseback deals for bulkers with Carlyle Group-backed Interlink Maritime and Louis Dreyfus, a tanker duo from Ardmore Shipping and a boxship quintet from CMB.
