Quintana Maritime Announces Sale and Lease-back of Panamax Vessels

Monday, July 02, 2007
Quintana Maritime Limited has agreed to a transaction with Glitnir Finance AS, subject to negotiation of final documentation and satisfaction of closing conditions, involving the sale and lease-back of seven of its oldest Panamax ships: Coal Glory, built in 1995, and Iron Man, Linda Leah, Barbara, Coal Age, Fearless I, and King Coal, all built in 1997. The sale and lease-back transaction is expected to produce net proceeds of approximately $250 million, and the Company expects to operate the ships for eight years, paying an average daily bareboat charter rate of approximately $12,700 for each vessel. The transaction is expected to close before the end of July 2007. Quintana will retain commercial and technical control of these seven vessels, which will remain in the Company's fleet over the next eight years. If the transaction is completed as currently contemplated, Quintana intends to allocate $185 million of the net proceeds to the repayment of debt outstanding under its revolving credit facility. In connection with this repayment, the Company expects to renegotiate its mandatory annual capital repayments of debt in order to reduce the payments by $9.0 million in the last six months of 2007, $17.0 million in 2008 and $11.5 million each year from 2009 through the maturity of the revolving credit facility in September 2014. Quintana expects to retain the remaining proceeds from the sale and lease-back transaction of approximately $65 million in cash. The sale transaction is expected to produce a non-operating book loss of approximately $10.0 million, after write-offs of unamortized dry docking costs and expenses of approximately $7.0 million, which will be amortized over the eight-year lives of the bareboat charters.
Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Dool to Serve as Chair of SLSMC Board

The St. Lawrence Seaway Management Corporation (SLSMC) announced that Tim Dool has been named as Chair of the Board of Directors, effective September 1. Dool was

Bollore First Half Boosted by Transport, Advertising Unit

French industrial group Bollore said first-half operating income rose 11 percent to 314 million euro because of strength at its transport business and advertising agency Havas,

Scrap Metal Exporter Pens Terminal Agreement

Port Canaveral Scrap Terminal LLC (PCST), a bulk ferrous scrap exporter, has signed a lease with the Canaveral Port Authority to operate a terminal in the north cargo area at Port Canaveral.

Navy

East and South China Sea Disputes Need Creative Diplomacy

China and the United States appear headed for a damaging confrontation over the extent of China's territorial claims in the South and East China Seas. Now that

Darwin, Australia Scene of KAKADU Exercise Planning

Over 1,200 military personnel from the Asia Pacific and Indian Ocean regions have completed collaborative, tactical warfare planning during the first week of the

Navy Autonomous Underwater Vehicle Delivery Milestone

Commander, Submarine Development Squadron 5 (CSDS 5), Detachment UUV, informs of the delivery of Large Training Vehicle 38 (LTV 38), an unmanned undersea vehicle (UUV),

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1964 sec (5 req/sec)