Sale leaseback agreement

Golden Ocean Group Limited has sold one of the Kamsarmax newbuildings ordered in October 2007 at Zhoushan  Jinhaiwan Shipyard (Jinhaiwan) in China. 



The vessel is scheduled to be delivered in Q3 2009 and will then be delivered to the buyers.  The sale proceeds are $65.3 million.  



Upon delivery from the shipyard, the vessels will commence a 10 year bareboat contract to Golden Ocean, at a daily rate of $21,975.  



Golden Ocean has further been granted fixed price purchase options after 3 years and have thereafter yearly options until the maturity of the bare boat contract.   The purchase option price after 10 years is $40 million.  



The transaction is likely to increase the company's cash position at the time of delivery with $21 million including installments already paid.



Given the cost of capital and the flexible structure of this deal, the Management of Golden Ocean finds this transaction attractive.

Source: Transportweekly