Euronav has entered into an agreement for the acquisition through resale of four VLCCs which are completing construction at Hyundai Heavy Industries for an aggregate purchase price of USD 384 million or USD 96 million per unit, the company said in its press release. The vessels are due to be delivered as early as September 2015, January, March and May 2016.
In addition and against the payment of an option fee of an aggregate amount of USD 8 million, the seller has also agreed to grant Euronav an option to acquire up to a further 4 VLCCs sisters of the ones acquired at a price of USD 98 million each.
Euronav will meet the financing of this acquisition with existing borrowing facilities. The payment profile for this transaction will mean the largest portion of each payment for each vessel will be made on delivery of each ship. Balance sheet debt leverage will move from around 40% at the end of March 2015 to less than 50% and will therefore continue to be appropriately levered allowing Euronav to retain its stren gth and flexibility.