Double Hull Tankers, Inc. has entered into an agreement to acquire a 2000 built 153,000 deadweight tonne Suezmax tanker, the M/T Ottoman Dignity, for $90.3 million for delivery in the period between December 2007 and early February 2008. The vessel will be bareboat chartered to Overseas Shipholding Group, Inc. (NYSE:OSG) for ten years at $26,600 per day throughout the period. The addition of this vessel to DHT’s fleet is expected to be immediately accretive to distributable cash flow.
The completion of the acquisition is subject to a number of customary closing conditions. The acquisition will initially be financed through DHT’s current credit facility with The Royal Bank of Scotland which has been increased to accommodate the acquisition of this vessel. Over time DHT plans to repay a portion of the debt through the raising of equity.
The acquisition is consistent with DHT’s strategy of having a fleet of modern, high quality vessels with long term employment providing for stable earnings. Also, the addition of a second Suezmax tanker is in line with DHT’s strategy to diversify its fleet and to charter vessels to first rate charterers.