SFL Corporation Ltd. announces that it has agreed to acquire two medium sized container vessels in combination with long term charters to a leading container line.
The vessels are modern eco-design built in 2013 and 2014 with approximately 6,800 TEU carrying capacity, and the Company expects to take delivery of the vessels in the near term. The purchase price is confidential.
The time charters will run for a period of minimum 6 years, and there are purchase options with profit split at the end of year 5 and 6 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 approximately $22 million per year.
SFL has already received financing indications at attractive terms, and the balance will be funded by cash at hand.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “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”.