MPC Container Ships ASA (MPCC) has decided to sell six container vessels with an average size of 1,200TEU for a total of US$135 million. MPCC’s total fleet will consist of 68 boxships once the sale of the six vessels has been completed.
With this action, the group said it aims to take advantage of historically high container ship asset prices. The decision for the sale of the six container ships is part of a package of measures to increase the company’s balance sheet flexibility in order to execute on the group’s plan to commence returning capital to investors.
The other measures are:
- New bank facility of US$180 million with HCOB at LIBOR + 335 bps
- More than 30 unencumbered vessels post-closing
- Seven additional multi-year charter fixtures concluded in historically strong charter market
- EBITDA backlog from 1 July 2021 onwards currently above US$700 million
During the fourth quarter, the company intends to use the bank facility, together with parts of the proceeds from the agreed vessel sales to refinance the existing DNB acquisition financing, as well as the outstanding US$204 million bond financing.
As a consequence, the previous acquisition financing with DNB and the outstanding senior secured bonds will be repaid in full and a significant number of vessels owned by MPCC will subsequently be unencumbered, according to a statement.
