- Super-Segregator Chemical Tankers to Join Odfjell’s Core Fleet.
- Purchase Option Prices 30% Below Market Value for Odfjell Tankers.
- Odfjell Secures $242 Million Credit Facility for Vessel Acquisitions.
Odfjell has exercised purchase options for four additional vessels currently on long-term lease, bringing the total to seven chemical tankers set for acquisition over the next 14 months. These vessels are part and parcel of Odfjell’s operations and are high-specification, reports Odfjell.
Fully Stainless-Steel Super-Segregation
The seven chemical tankers are all stainless-steel vessels that are classified as super-segregators. They range from 35,000 to 41,000 dwt. Two of the tankers were built between 2016 and 2020 in Japan, while five were built in China.
Leasing and Attractive Purchase Terms
The vessels are currently part of Odfjell’s core fleet and are on lease arrangements:
- Five on operational lease
- Two on financial lease
- The operating lease option prices are about 30% below current market values, thus offering major cost benefits.
Financing Through a New Credit Facility
To fund the purchases, six of the vessels will be collateralized under a new revolver credit facility of up to USD 242 million. The facility is supported by a syndicate of Odfjell’s relationship banks and will be on good terms. The financing agreement is likely to be completed at the beginning of the first quarter of 2025.
Ownership of the Long Haul and cost-efficiency
By moving to long-term ownership, Odfjell has successfully reduced the cash break-even for these vessels by more than USD 3,000 per day. This was achieved due to the favourable purchase prices and competitive financing terms.
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Source: Odfjell
