Ice-class Panamax Vessels Bargain Deal for Golden Ocean

Golden Ocean Group agrees to buy two 'resale' ice class Panamax vessel built at India's Pipavav Defence & Offshore Engineering Company.

The company will  take delivery of the vessels ex yard, the first vessel at the start of June and the second vessel during second half of 2013. In connection with the purchase the seller has provided a 30% seller's credit towards Golden Ocean for each vessel. The seller's credit will be repaid over three years in equal installments every January, but the first installment is at earliest 6 months after delivery of the vessel.

The vessels will be named Golden Pearl and Golden Diamond. The vessels have not been part of the Company's construction program at the yard and are bought from third parties.

Golden Ocean has at the same time obtained regular bank financing of 65% of the contract price. Thus the initial cash payment for the Company in 2013 is limited to 5% of the purchase price for each of the vessels.

The price of the vessels reflects the current market price, bearing in mind the additional requirements for an ice class vessel. The Company will in total have 9 fairly identical ice class vessels once these are delivered and see this as an attractive niche. They say they have over time gained experience in how to utilize this type of vessels both commercially and technically. Since the first ice class vessel was delivered to Golden Ocean 5 years ago they add that they have been able to achieve a premium compared to the prevailing spot market during the winter season.