SFL Corp has locked in $981m in loans and operating leases as it adds to growing acquisition power and refinances debt.
The deals were announced in an earnings report as the New York and Oslo-listed vessel lessor, part of Norwegian-born shipping tycoon John Fredriksen’s stable, highlighted that it still has more dry powder for acquisitions.
The deals included $700m in commitments for refinancing that will cover all its debt maturities over the next 12 months.
SFL also scored a $244m loan for five tankers purchased in two separate deals in March and April.
The company said it secured “senior bank financing at attractive terms” for the quintet.
In April, SFL announced the purchase of two 33,000-dwt chemical tankers, which can operate on LNG or conventional fuels, in a $133m deal.
SFL said at the time that the duo was chartered to Stolt Tankers on long-term contracts.
Shipping databases show the chemical carriers are the Gold Trader II and Gold Trader III (both built 2022), which were owned by Japan’s Nisshin Shipping.
SFL, which is led by chief executive Ole Hjertaker, said it spent about $230m in March on three LR2 product tanker newbuildings from Fredriksen’s Hemen Holdings.
The trio has long-term charters to a “world-leading energy and commodities company”.
SFL also said it concluded a $37m deal for what is known as a Japanese operating lease with a call option, or JOLCO.
The financing, which the company said comes with “very attractive” terms, is backed by the 2,452-teu container ship Maersk Phuket (built 2022), which was previously unencumbered.
The lease financing’s maturity profile matches the long-term charter to AP Moller-Maersk.
“On the financing side, SFL had a busy quarter,” Fearnleys Securities analysts led by Fredrik Dybwad said after the company reported its earnings.
As TradeWinds has reported, in April, SFL said it sold $150m in senior unsecured, sustainability-linked bonds in Oslo.
Then in July, the company sold 8m shares worth $12.50 apiece, with underwriters granted options for 1.2m more, meaning the deal could raise $115m in gross proceeds if all options are exercised.
But even before that, SFL had $186m in cash and equivalents on its balance sheet when the second quarter closed.
And it had $180m of combined market value on unencumbered vessels.
SFL’s next financing goal is to pay for five recently ordered 16,800-teu container ships, which will cost $1bn.
“The vessels are expected to be funded by a combination of cash at hand and conventional pre-delivery and post-delivery vessel financing,” it said.
