- Nasdaq-listed Grindrod Shipping has sealed a sale and leaseback transaction with a Japanese ship owner.
- The transaction is for 2010-built 33,100 dwt handysize dry bulk carrier IVS Knot.
- Vessel was sold for $13m having a bareboat charter for a period of up to 11 years, with options to extend for up to two additional years.
- IVS Knot strengthens Grindrod Shipping’s liquidity by approximately $13.8 million.
- Strategic alternatives for IVS Bulk are still under discussion.
Nasdaq-listed Grindrod Shipping has sealed a sale and leaseback transaction with a Japanese ship owner for 2010-built 33,100 dwt handysize dry bulk carrier IVS Knot, reports Splash247.
Ultramax bulker IVS Phoenix
The vessel was sold for $13m and the company will bareboat charter the vessel back for a period of up to 11 years.
The company has the right to acquire the vessel from the end of the second year of the charter.
In the meantime, the company took delivery of ultramax bulker newbuilding IVS Phoenix.
This has been chartered-in for a minimum period of three years, with options to extend for up to two additional years.
Sealing sale and leaseback of IVS Knot
Martyn Wade, CEO of the company, said that they have recently taken delivery of the IVS Phoenix, concluding the sale and leaseback of the IVS Knot.
He added that the deal represents a new source of funding for the Company and the sale and leaseback transaction adds a new dimension to the existing relationship within the Japanese market.
Grindrod Shipping
He also believes that this gives the potential to leverage further for the company. Through the IVS Knot and the sale of the joint venture loan Grindrod Shipping has strengthened its liquidity by approximately $13.8 million without divesting control of any core assets.
Additionally, Grindrod Shipping and its joint venture partners agreed to the further extension of the termination date of the IVS Bulk joint venture from June 30 to September 30.
The company said it is still in talks with its joint venture partners regarding strategic alternatives for IVS Bulk.
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Source: Splash247
