Greece’s Performance Shipping has entered into a sale-and-leaseback agreement for one of its existing tanker newbuildings.
The 10-year deal involves one of two 114,000-dwt LNG-ready, scrubber-fitted vessels the firm has on order.
The Nasdaq-listed owner outlined that the bareboat financing amount totals about $45.39m with a third party, which the shipowner has not named.
Performance chief executive Andreas Michalopoulos said: “This sale-and-leaseback agreement showcases our ability to secure attractive funding for our newbuilding programme by expanding our partnerships with reputable leasing companies in Asia.”
He described the funding strategy as conservative, with the bareboat financing amount of $45.39m representing 70% of the vessel’s shipbuilding contract price. The percentage is lower based on the vessel’s present market value.
Performance indicated it has “continuous options to repurchase the vessel at predetermined rates following the second anniversary of the bareboat charter”.
As previously reported, the vessel has been chartered to Clearlake Shipping for five years, upon delivery of the vessel, at a rate of $31,000 per day. Extension options run for a further two years.
Michalopoulos added: “The financing terms are competitive, resulting in an estimated daily cashflow breakeven of approximately $24,390 per day.
“This is comfortably covered by the secured daily charter rate of $31,000 [per day] for the initial five-year operating period of the vessel.”
