Norway’s Ocean Yield has bolstered liquidity through a series of refinancings while securing longer-terms for container vessels chartered by CMB.
The sale-and-leaseback specialist, owned by giant US private equity player KKR, had deals with the Belgian operator for four 3,800-teu ships until 2029.
The two sides have agreed to amend these charters to stretch the term for an unspecified length, adding $30m to the outstanding lease amount.
The loan secured on the vessels had earlier been increased by $17m, maturing in 2027.
The ships are the Livorno Express, Barcelona Express, Detroit Express and Genoa Express (all built 2014).
Ocean Yield’s net earnings were $23.4m in the third quarter, against a loss of $2.5m a year earlier.
The 62 ships brought in revenue of $51.1m, compared with $44.7m in 2021.
The company had $122m in cash as of 30 September, and refinancing of several loan facilities after this date has added $90m in liquidity.
Ocean Yield revealed it has amended a loan relating to four car carriers on long-term charters, adding a further $64m.
Proceeds may be used for general corporate purposes.
More refinancings expected
Another loan tied to the 10,900-dwt subsea ship Aker Wayfarer (built 2010), on charter to Akastor and sub-chartered to Petrobras until 2027, has been upsized by $26m.
The company is also refinancing other loan facilities, which is expected to free a further $30m of liquidity.
The Ebitda charter backlog is $3.4bn, with an average remaining contract duration of 8.7 years.
Chief executive Andreas Rode said: “Despite volatile markets and increasing macro uncertainty, the third quarter was another solid quarter for Ocean Yield, with stable performance across our fleet of vessels on long-term charters.
“As we continue to invest in modern, future-proof vessels, we are pleased with the continued support from our senior financing providers, enabling us to execute attractive financing for both new transactions and refinancings of the existing fleet.”
In the second quarter, its partners declared purchase options for two product tankers and one car carrier.
More vessels going
Ocean Yield said that since then, a chemical tanker, three product tankers, a bulker and a car carrier have also been sold, for delivery by the third quarter of 2023.
Owners involved include Scorpio Tankers, Ardmore Shipping, Hafnia and Hoegh Autoliners.
The price is $265m combined, with Ocean Yield set to bank $67m as profit that will be reinvested in new vessels with long-term charters.
Ocean Yield said it continues to selectively evaluate new investments in ships.
It has a focus on modern tonnage and newbuildings within conventional shipping segments.
Fearnley Securities expects earnings to remain steady and strong due to the charter backlog.
