Monaco-based MC Shipping has sold six small LPG carriers and chartered them back in a deal aimed increasing liquidity. A statement says that MC is selling the ships to a special purpose German KG company to be formed by the German finance house MPC Capital for a total sale price of US$52m.It adds: “Five vessels will be delivered before year end and the sixth vessel in 2007. The company will charter back the vessels for a minimum period of four years and reinvest between US$5m and US$5.75m in the KG company for 25% of the equity. The total book value of the vessels to be sold was US$32.8m as of September 30, 2006. Upon the sale of the vessels, the company will prepay the corresponding portion of the New Fortis Loan, which amounted to approximately US$22.2m as of November 14, 2006. After repayment of the debt and reinvestment in the KG company, the net proceeds of the transaction will be approximately US$24m to MCCompany CEO and president Tony Crawford said: “We remain committed to these ships and the industry sector. The manager, Hanseatic, will remain unchanged and delivery will be co-coordinated with our long-standing customers such as Statoil, Total and Petredec. After the investment of over US$170m in new assets in the last 18 months, this envisaged transaction will provide the company with additional liquidity and an opportunity to capitalize on the increased value of our assets.”
Meanwhile MC reported a strong Q3 with revenue up 43.4% on Q3, 2005, to US$14.1m but net profit was US$1.3m, down US$2.9m due to exceptional items including excess dry-dock off-hire, change of managers, loss on debt extinguishment and lost income related to late delivery of two vessels.Mr Crawford said: “This quarter has been very busy for MC Shipping. The Company acquired three mid-size LPG carriers with time charters attached, completed major dry-docks on two vessels, and changed technical managers The acquisitions serve to build an increased presence in the LPG industry with strong partners.”