News

2018 November 6 15:04

Ship Finance enters into $400m lease financing for 4 x 14,000 TEU container vessels

Ship Finance International Limited has entered into lease financing agreements totaling $400 million with an Asian-based institution to finance four 14,000 TEU container vessels acquired in May 2018, the company said in its press release. 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.

About Ship Finance
Ship Finance International Limited 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.