SFL - $400m Lease Financing for 4 x 14,000 TEU container vessels
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the "Company") announces that it has entered into lease financing agreements (each, a "Lease Financing") totaling $400 million with an Asian-based institution to finance four 14,000 TEU container vessels acquired in May 2018. The vessels are employed under long term time charters to Evergreen Marine Corporation (Taiwan) Ltd. ("Evergreen") until 2024, with options to extend the charters by 18 additional months.
Each Lease Financing has a term of nearly nine years, with an option to purchase the vessel back after six years, around expiry of the firm period of the charters to Evergreen. A portion of the proceeds from the Lease Financings will be used to refinance the $320 million unsecured loan facility arranged at the vessels' delivery in May. Lease Financings for three of the vessels have already been finalized, and the last vessel is expected to close within the next two weeks.
The interest rate of the Lease Financings are very attractive, and the transactions free up $80 million of investment capacity, which is expected to be deployed in new investments.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "These financing transactions demonstrate our continued ability to attract highly competitive capital. Ship Finance's strong profile in the maritime financing market provides us access to a broad range of attractive financing solutions. This in turn allows us to create long term value for our shareholders and support our dividend distribution capacity."
November 6, 2018
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions can be directed to Ship Finance Management AS:
Investor and Analyst Contacts:
Harald Gurvin, Chief Financial Officer, Ship Finance Management AS
André Reppen, Senior Vice President, Ship Finance Management AS
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS
About Ship Finance
Ship Finance International Limited (NYSE: SFL) has a unique track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company's fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore assets, and Ship Finance's long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website:
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.
