SFL seizes 14,000 teu par and sells vintage feeder boxships to MSC
John Fredriksen’s SFL Corporation acquires two 14,000 teu container ships from undisclosed owners and sells 18 old feeder boxships between 1,100 and 4,400 teu to Mediterranean Shipping Company (MSC).
The New York-listed company said the two additions are modern eco-designed vessels built in 2013 and 2014, similar to four vessels in its fleet and employed on time charters through 2023 and 2024, respectively. Delivery of the new vessels is scheduled for the third quarter of this year. No price has been released.
SFL noted that it plans to initiate discussions for new charters long before existing charters expire. The EBITDA contribution of the two vessels is approximately $ 29 million per year, until the expiration of existing charters.
The ships for sale are part of the case of 2018, when SFL agreed to lease-finance 18 vintage feeder boxships to an MSC affiliate. The Swiss-based container company will exercise buyback options for these vessels in the third quarter. Ships are on average 25 years old, says SFL.
SFL estimates that it will earn $ 40 million in net proceeds after repayment of associated debt, which will be reinvested in new assets, including the two 14,000 TEU container ships.
Ole B. Hjertaker, CEO of SFL Management, commented: “The acquisition of these modern, eco-designed container ships coincides with the divestiture of older, less efficient vessels and demonstrates our commitment to further improve our carbon footprint in line with our ESG strategy.
“The cash flow is immediate and we believe that the timing of the vessels opening to new charters in 2023/2024 could prove to be very attractive.”