Ship Finance International Acquires a Pair of Container Vessels

Ship Finance International,  affiliated with the shipping magnate John Fredriksen, has acquired two 2016-built 19,400 TEU container vessels and contracted the vessels until late 2033, or for nearly 15 years, to a leading container line on long term bareboat charters.

The contracts increase the Company's fixed rate charter backlog by nearly $470 million, and the charterer has agreed to purchase obligations at the end of the charter period, effectively eliminating residual risk.  

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "This new acquisition broadens our relationship with one of the world's largest liner companies. Over the last nine months we have added more than $1.2 billion to our charter backlog in a series of accretive acquisitions."

Hjertaker added: "In this case, our equity investment is limited to approximately $15 million per vessels as we have secured non-recourse lease financing with a tenure matching the charter period. We believe that our strong balance sheet and ability to source attractively priced capital will allow us to continue to grow our charter backlog and cash flow visibility going forward."

Ship Finance International's fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore assets, and Ship Finance's long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time.