The Board of Frontline Ltd. (the “Company” or “Frontline”) announces that it has agreed to acquire the VLCC “Front Vista” (the “Vessel”) from Ship Finance International Limited at a purchase price of USD 58.5 mill.
Frontline has furthermore agreed to sell the Vessel and the Buyer will settle the purchase price through the payment of instalments over a 10 year period. The Buyer has secured a 10 year time charter with a State owned oil company at a gross rate of USD 43,500 per day during the entire charter period.
The transaction reflects the Company’s goal of securing long term coverage for parts of its fleet.
I am not certain who is collecting the $43k per day: Frontline or the buyer? Hope Ship Finance made out OK as I own stock in SFL.
OK, just got the email from Ship Finance, here is a exerpt:
Ship Finance will receive net proceeds of approximately $22.1 million after prepayment of associated debt. The sale is expected to result in a book gain on sale of assets of approximately $1.8 million.
Frontline sells VLCC
Here is the press release:
I am not certain who is collecting the $43k per day: Frontline or the buyer? Hope Ship Finance made out OK as I own stock in SFL.
OK, just got the email from Ship Finance, here is a exerpt: