Hong Kong-listed Seacon Shipping has moved to reshape its newbuilding pipeline, taking over contracts for six ultramax bulk carriers and lining up long-term leaseback financing to fund the deal.
The company said it has entered into novation agreements to assume all rights and obligations under existing shipbuilding contracts for six 63,800 dwt bulkers at Nantong Xiangyu Shipbuilding & Offshore Engineering. The vessels will be delivered between January 30 and November 30, 2027.
Under the novation, Seacon agreed to acquire the ships for an aggregate price of $198.6m. The previous buyer transferred the contracts at nil consideration, having made no instalment payments under the original agreements.
The previous buyer is a Marshall Islands-incorporated joint venture owned 50/50 by Seacon and Aurora Ships, the latter ultimately controlled by Liu Renchuan.
To finance the acquisition, Seacon has put in place 15-year sale-and-leaseback arrangements with Minsheng Financial Leasing. The finance leases run for 180 months from delivery, with the net proceeds used to cover the shipbuilding costs.
Seacon’s chartering subsidiaries will have purchase options on each vessel during the lease term and are obliged to buy back the ships at the end of the charter period at pre-agreed prices. The move follows Seacon’s recent decision to exit a separate set of six 5,200 dwt multipurpose newbuilding contracts, which were transferred to German owner Gerdecon.