Published: 13:40 CET 03-11-2010 /Thomson Reuters /Source: Ship Finance International Limited /NOTC: SFL /ISIN: BMG810751062
SFL - New Charters and Financing Agreements
Press release from Ship Finance International Limited, November 3, 2010
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"), today announced new time-charters for the four remaining 34,000dwt Handysize bulk carriers under construction in China.
The Company has agreed to charter the vessels to a large privately-owned Chinese industrial conglomerate at a net rate of approximately $14,000/day per vessel.
The charter period is five years and expected delivery from the shipyard is currently between 3Q 2011 and 1Q 2012.
The Company has also secured bank financing for two of its recently announced 57,000dwt Supramax bulk carrier acquisitions.
SFL Hudson was delivered to Ship Finance in October 2010 and SFL Yukon is expected to be delivered from the shipyard in December 2010. Both vessels are on long-term charters to an investment-grade Asia-based logistics company.
The new loan will be approximately $54 million, or 80% of the contract price of the vessels, and will have a tenor of eight years.
Ship Finance will only provide corporate guarantees for a limited part of the outstanding loan amount. The equity contribution per vessel will be approximately $7 million, and the net cash flow after expected operating expenses, interest and loan amortization is projected to be on average approximately $1 million per year per vessel.
Following the above chartering agreements, Ship Finance has secured medium to long-term charters for all vessels under construction.
To date all payments relating to newbuildings have been funded from the Company's cash position and the Company is in dialogue with financing institutions for the long-term funding of the remaining vessels under construction.
November 3, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
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http://shipfinance.bm/
