SFL Corporation to acquire two container ships
Bermudian-based SFL Corporation Ltd has agreed to acquire two medium-sized container vessels in combination with long term charters to a leading container line.
The company said the vessels are modern eco-design built in 2013 and 2014 with approximately 6,800 20-foot equivalent unit (TEU) carrying capacity.
SFL expects to take delivery of the vessels in the near term. The purchase price is confidential.
The company said the time charters will run for a period of a minimum six years, and there are purchase options with profit split at the end of year five and six of the charter period.
The fixed rate charter backlog will increase by approximately $160 million, and the EBITDA contribution from the vessels is estimated to be approximately $22 million per year, the company said.
SFL has already received financing indications at attractive terms, and the balance will be funded by cash at hand, it said.
Ole B Hjertaker, CEO of SFL Management AS, said: "This acquisition highlights our strength and ability to achieve sustained growth through repeat transactions with the world’s largest liner companies.
“We have firmly established ourselves as a quality operator of vessels, and our financial flexibility enables us to execute swiftly on new transactions.
“Over the last months we have added more than $400 million to our charter backlog and expect to continue increasing our fleet of vessels and charter backlog in 2021.”
SFL is one of the world’s largest ship-owning outfits. The company’s fleet of more than 80 vessels is split between container vessels, bulkers, tankers and offshore drilling rigs.