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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Keystone XL Costs to Nearly Double - TransCanada

The total cost of TransCanada Corp's controversial Keystone XL pipeline is likely to nearly double following six years of regulatory delays, a company spokesman said on Friday.

Chevron To Find Buyers for Hawaiian Refinery

Chevron Corp has hired an investment bank to identify potential buyers of its 54,000 barrel-a-day refinery in Kapolei on the Hawaiian island of Oahu, a company official said.

Rotterdam Integrates Safety Research with LNG Training Facility

The Dutch company Falck Risc is becoming the number one expert on LNG safety in Europe. Together with the Unified Fire Department, Falck Risc will draw up guidelines

Navy

AN/SPY-1 SSSA Completes Critical Design Review

The Critical Design Review (CDR) stage for AN/SPY-1 radar Solid-State Switch Assembly (SSSA)'s high voltage modulator completed Aug. 26, confirming that the

General Dynamics Wins US Navy Award for F/A-18 Mission Computers

General Dynamics Advanced Information Systems, a business unit of General Dynamics, was awarded a $16.2 million contract by the U.S. Navy to produce Type-3 Advanced

Phoenix International Awarded US$75-M Subsea Navy Contract

US Department of Defense inform that Phoenix International Holdings Inc., Largo, Maryland, is being awarded a $75,000,000 indefinite-delivery/indefinite-quantity,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pod Propulsion Port Authority Ship Electronics Ship Repair Sonar Winch
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: 0.1427 sec (7 req/sec)