Cecon acquires vessel Micoperi Pride
Cecon enters into an agreement with funds managed by affiliates of Fortress Investment Group LLC for Fortress to acquire Micoperi Pride, formerly Cecon Pride, the company said in its press release.
Cecon will receive cash consideration, and will retain a minority ownership interest in the vessel. In addition, Cecon will have the ability to realize additional consideration in the form of an earn-out payment.
Cecon ASA (“Cecon”), through its subsidiary Rever Offshore AS (“Rever”) and the ship owning company Cecon Shipping 2 AS (“CS 2”), has reached an agreement to sell the Micoperi Pride, formerly Cecon Pride, to the single purpose vehicle (SPV) FTAI Pride Inc, a company controlled by Fortress Investment Group. Fortress is a highly diversified investment manager with more than 60 billion USD under management.
Cecon will hold a minority shareholding in the buying company, and will together with Fortress collaborate to manage the vessel and identify and secure future charters for the vessel.
The maximum cash consideration and 16.2% of the SPV taken into account give an implicit valuation of the vessel at close to 160 MUSD on a debt free basis.
Cecon has reached the necessary agreement with York, the holder of all A and B bonds, to align receipt of the sales proceeds with repayment of the construction financing.
Micoperi Pride arrived Limassol last Wednesday, and has entered a 10 month (with 1 plus 1 month options) charter with Micoperi. The vessel is to commence construction work for the Italian energy group Eni.