Bourbon sheds more vesselsCompany News // January 8, 2014
Bourbon has announced the transfer of ownership of 12 vessels to the Chinese company ICBC Financial Leasing (ICBCL) for a total of approximately US$378 million, as part of the sale and bareboat charter agreement for up to 51 vessels signed with ICBCL on April 9, 2013.
With the nine vessels transferred in September 2013 as part of the agreement, this brings the total number of vessels transferred to ICBCL to 21 for a total value of approximately US$522 million.
The transfer of the remaining maximum 30 vessels should take place during the first half of 2014.
At the end of November 2013, Bourbon signed an agreement with Standard Chartered Bank (SCB) for the sale and bareboat charter of six newbuild vessels for a total of approximately US$150 million. Ownership of three vessels was transferred for an amount of nearly US$65 million at the end of 2013.
The remaining three vessels will be delivered to SCB during the second half of 2014.
The agreement provides for a fixed bareboat charter rate of 10.2 per cent per year for 10 years.
In addition to vessel disposals in line with the 'Transforming for Beyond' action plan, Bourbon sold older vessels in 2013 for a total value of US$183 million, some of which included a bareboat charter agreement.
Through the implementation of its active fleet management program, Bourbon has achieved US$770 million of vessel sales in 2013, generating a capital gain of approximately US$180 million.
The company said that, as expected, free cash flow will be positive for the second half and full year 2013, and the level of its debt will be reduced.