Ship Finance International Limited has agreed to sell the offshore supply vessel Sea Trout to Deep Sea Supply for U.S. $29 million.
Reference is made to press releases of August 10, 2007 and November 7, 2007 regarding the acquisition of 5 plus 2 offshore supply vessels from Deep Sea in combination with long-term charters back. As part of the agreement, Deep Sea was given the option to re-purchase one of the vessels prior to the first agreed purchase option date.
Deep Sea has now decided to exercise this option, in combination with a sale of the vessel to a third party, and the vessel is expected to be delivered to the new owner in January 2008.
The agreed sales price to Deep Sea is approximately $29.0 million, including approximately $2.4 million outstanding under a seller credit from Deep Sea. There is currently approximately $21.8 million in loans outstanding against the vessel, and the net cash effect to Ship Finance from the transactions is estimated to be approximately $4.8 million. We expect to book a small book profit on the transaction, which will be recognized in 1Q 2008.
The remaining offshore supply vessels will continue their long-term charters to Deep Sea. Two of the vessels previously expected to be delivered to Ship Finance in December 2007 are now scheduled to be delivered in January 2008.
Most Popular Articles
From the Career Center
Jobs that may interest you