d’Amico buys leased MR tanker

d’Amico Tankers D.A.C. (Ireland), part of Italian shipping company d’Amico International Shipping S.A. (DIS), has exercised its purchase option on the MT High Priority, a 46,847 dwt MR product tanker.

The ship, built by Nakai Zosen in Japan in 2005, has been bought for $9.7 million.

In 2017, the vessel was sold and leased back by d’Amico Tankers for a five-year period, with purchase options starting from the second anniversary date and a purchase obligation at the end of the fifth year.

“I am pleased to announce the exercise of our purchase option on one of d’Amico Tankers’ leased vessels, a transaction fully in line with our strategy of deleveraging DIS’ balance sheet and reducing its financial
break-even. In fact, the existing lease will be substituted with a bank-loan financing at a much lower leverage and at a substantially lower cost of debt,” Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, commented.

“We were able to take advantage of this opportunity thanks to the sound financial and liquidity position we have reached today, as the result of the strong freight markets of the first half of 2020, in addition to the proceeds derived from the sale of most of our oldest ships over the last few years.”

“As well as improving our cash resources, the sale of our oldest tonnage allows us today to operate a primarily ‘Eco’ fleet,” d’Amico added.

As of 5 February, DIS’ fleet comprised 39 double-hulled product tankers with an average age of about 6.4 years for its owned and bareboat chartered-in vessels.