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MS Borneo - Fully Syndicated
Asset
A modern Super-Handymax bulker vessel, with a deadweight of approx. 50,000
tons. The vessel is one of the most recent generation of open hatch
bulkers which, due to their box shaped cargo holds and ship-wide hatches,
are ideally suited for the transport of unitised goods. The vessel will
be built at the state-owned Indonesian yard PT. PAL for a purchase price
of USD 29 million.
Market
Dry bulk carriers account for nearly 40% of the total load-carrying
capacity of the world-wide maritime trade fleet. Historically the dry
bulk market has exhibited stable growth, which, with
the forecast growth of the global economy (especially in Asia), is expected to continue in the future. Typical dry bulk cargoes are
coal, grain, iron ore, agricultural products as well as steel and paper
products.
Employment
MS Borneo is under a long-term time charter to Gearbulk Shipowning Ltd.
The charter rates run at USD 16,000 per day (gross) for 10 years
and USD 17,000 per day (gross) for years 11-15. USD 14,400 per day
(gross) has been estimated as the re-hiring charter rate, assuming the charterer
does not exercise its purchase options. At the end of the 20 year base
case, a sale of the vessel at scrap value has been assumed.
Charterer
The charterer is part of the Gearbulk group, one of the leading companies
in the open hatch bulker segment and the market leader in the transportation
of paper and other forest products.
Ship Management
Management of the ship is undertaken by Sunship Schiffahrts Kontor KG,
Emden, a member of the Reederei Lauterjung group. The Reederei Lauterjung
group has comprehensive experience in managing seagoing vessels going back more than 25 years.
Debt Financing
Debt financing accounts for 31% of the transaction volume and is
exclusively USD denominated. The debt financing is fully amortised
over 10 years, i.e. over the tenor of the time charter with Gearbulk.
Interest payments are capped by way of an interest cap agreement.
Economics
- Projected total distributions of 231% (including repayment of capital)
- Tonnage tax
