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SFL Acquires Two Modern Containerships and Sells Vintage Feeders to MSC

Mike Schuler
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August 4, 2021

NYSE-listed SFL Corporation (NYSE: SFL) has agreed to acquire two secondhand 14,000 TEU containerships backed by charters to a leading container line.

The company described the vessels as modern eco-design ships built in 2013 and 2014 and similar to four vessels already in its fleet. The vessels are expected to be delivered to the company in the third quarter of this year. The seller and price paid were not disclosed.

The two vessels come with time charters until 2023 and 2024, respectively, and are expected to contribute approximately $29 million per year to EBITDA through the end of the current charters. SFL said it expects to initiate discussions for new charters well in advance of expiry.

Separately, SFL has also said that Mediterranean Shipping Company has exercised a repurchase option for 18 “vintage” feeder vessels that were originally lease financed in 2018. The vessels are approximately 25 years old on average and between 1,100-4,400 TEU capacity.

SFL said net cash proceeds after repayment of debt is estimated to be approximately $40 million, which will be reinvested into new assets including the two 14,000 TEU containerships.

“We are excited to add these 14,000 TEU container vessels to our fleet. Cash flow is immediate, and we believe the timing for when the vessels will be open for new charters in 2023/2024 could prove to be very attractive,” said Ole B. Hjertaker, CEO of SFL Management AS.

“The acquisition of these modern eco-design containerships coincides with the disposal of older less efficient vessels and demonstrates our commitment to further improve our carbon footprint pursuant to our ESG strategy,” Hjertaker added.

SFL Corporation’s fleet consists of more than 80 vessels spanning containerships, bulkers, tankers, car carriers and offshore drilling rigs

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