Euronav NV has entered into a five -year sale and leaseback agreement for four VLCC vessels wit h investment vehicles advised by Wafra Capital Partners Inc., a private equity partnership, the company said in its press release. The four VLCCs are the Nautilus (2006), Navarin (2007), Neptun (2007) and Nucleus (2007). The transaction assumes a net en -bloc purchase price of USD 186 million.
The transaction produced a capital gain of about USD 37 million and the transaction should be booked as a n operating lease under IFRS . As per Euronav dividend policy, this capital gain will not be eligible for dividend distribution. After repayment of the existing debt, the transaction generated in excess of USD 100 million free cash. The vessels were delivered to their new owners, the investment vehicles advised by Wafra Capital Partners Inc . on 22 December 2016.
Euronav has leased back the four vessels, which were built by Dalian Shipbuilding Industry Co., Ltd . (DSIC), under a five year bareboat contract 1 at an average rate of USD 22,000 per day per vessel and at the expiry of each contract the vessels will be redelivered to their new owners.