Frontline Ltd. to acquire the 2002-built VLCC Front Eagle

Frontline Ltd. has declared its option to acquire the 2002-built VLCC Front Eagle, currently chartered in from a German KG.


The vessel has simultaneously been sold to an unrelated third party for $67 million. Frontline has in connection with the sale agreed to charter back the vessel from the new owner. The duration of the time charter is about two years at a rate of $32,500 per day. Re-delivery from the German KG, delivery to the new owners and commencement of the time charter is expected to take place concurrently in the second quarter of 2011. The transaction will generate about $10 million in cash for Frontline and will reduce the company's obligations under capital leases with approximately $37.3 million.
(Source:http://www.transportweekly.com)