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Sunday, October 23, 2016

Arlington Tankers to Acquire Product Tankers

November 17, 2005

Arlington Tankers announced that the Company has entered into an agreement to acquire two modern 47,000 deadweight ton double-hulled product tankers from the Stena Group for an aggregate purchase price of $92 million in cash. The new vessels, Stena Contest and Stena Concept, were built in 2005. Arlington expects to take delivery of the vessels in January 2006. In conjunction with the purchase, Arlington will enter into fixed rate charter hire agreements with Stena Bulk AB for both vessels. The charters will be for an initial period of three years, at a rate commencing at $19,765 per day for the first year, $20,043 per day for the second year, and $20,335 per day for the third year. There is no additional hire provision during the initial three year period. At the end of the three year period both Arlington and Stena Bulk will have the option to extend the charters for an additional 30 months. Arlington will also enter into vessel management agreements for both vessels with Northern Marine Management Ltd. for the term of the charters, at fixed rates commencing at $5,565 per day and increasing at 5% per year. Northern Marine Management Ltd. is a wholly-owned subsidiary of Stena Group. These management agreements will be on substantially similar terms as the management agreements that Arlington now has in place for its existing six vessels.

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