International Shipping Giant Announces The Exercise Of 2 Purchase Options

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d’Amico International Shipping S.A., an international marine transportation company operating in the product tanker market, announces that its operating subsidiary d’Amico Tankers D.A.C., exercised its purchase options on the existing bareboat charter contracts for MT High Discovery, for a consideration of US$ 20.3 million, and for MT High Fidelity (a 49,990 dwt medium-range product tanker vessel), for a consideration of US$ 19.2 million, reports a short press release on their website.

New 10-year leases

In addition, d’Amico Tankers will refinance the two vessels with new 10-year leases (bareboat charter contracts), with a purchase obligation at the end of the contract, and purchase options starting from the second anniversary date for MT High Discovery and the third anniversary date for MT High Fidelity.

As of today, DIS’ fleet comprises 35 double-hulled product tankers (MR, Handysize and LR1, of which 17 owned, 10 chartered-in and 8 bareboat chartered-in) with an average age of about 6.9 years for its owned and bareboat chartered-in vessels.

Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, stated:
“I’m satisfied to announce the conclusion of these refinancing transactions with reputable Japanese counterparties, which allow DIS to generate some cash at inception of the new lease contract, while significantly reducing the cost of funding and the P&L and cash break-even for these two modern vessels.

In addition, we will retain full control, both technical and commercial, of these two young Eco MR ships, through new 10-year bareboat charter contracts and we will have the option of repurchasing the High Discovery and the High Fidelity, starting respectively from the second and third anniversary of their contract start dates.”

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Source: d’AMICO

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