Ardmore Shipping is the latest public owner to turn to lease financing.
New York-listed Ardmore has refinanced the 47,000-dwt Ardmore Seatrader (built 2002) via a sale-and-leaseback deal, it announced in its quarterly report.
After debt repayments, the transaction will generate $9.3m, which has been earmarked for general corporate purposes.
The deal came to light as Ardmore reported a $3.7m loss for the final three months of 2016, compared with a profit of $5.4m in the same stretch a year ago.
Its loss per share of $0.11 measured up with consensus projections.
Mike Webber of Wells Fargo Securities noted the owner’s MRs averaged $15,395 per day in the fourth quarter, up by one tenth from the previous three-month period.
Elevated Atlantic Basin petroleum product inventories coupled with lingering summer seasonal factors kept product tankers weak on a relative basis during the fourth quarter, Webber explained.
Sale-and-leaseback deals have become increasingly popular given the lack of bank debt and unhelpful conditions in the capital markets.
Euronav and Concordia Maritime are among the other public shipowners to turn to such transactions of late.
