Synergy Maritime Holdings Corporation (NASDAQ: SHIP) is taking full advantage of how robust the current market conditions are, and it has fixed its M/V Worldship, another of its Capesize vessels, under fixed-rate T/C (time charter) with a global United States commodity trading company. Furthermore, the company successfully completed financing two new acquisitions, the M/V Patriotship built in 2010 and the M/V Hellaship built-in 2012, via a leaseback and sale agreement with a huge financial institution based in China.
M/V Worldship’s Time Charter Agreement
This vessel has a fixed-rate T/C of $31,750 gross daily rate with a US-based commodity trading company for around twelve to sixteen months. Therefore, the time charter should start immediately after the upcoming delivery of the M/V Worldship, which parties involved expecting to happen this month.
Financing of both the M/V Patriots and M/V Hellaship
The ships were chartered back and sold on a bareboat agreement for five years, and the combined consideration agreed upon came to about $30.9 million. Following the bareboat charter’s second year, Synergy has continuous options to buy back the boat after five years. It can buy back the two ships for a total sum of $15.3 million.
Synergy’s Chief Executive Officer and Chairman, Stamatis Tsantanis, said that he was delighted to talk about these key transactions they’ve done. He said that the debt financing the company managed to secure from recent ship purchases is conservatively structured and competitively priced, which has given rise to lower break-even rates that can help boost the company’s cash-flow generating capabilities.
He claimed that the company is taking full advantage of current robust market conditions to boost fixed-rate T/C agreements exposure when it comes to chartering. The repeat business they’ve had with their existed charter, he claims, confirms the commercial and operational excellence of their fleet. Following the M/V Worldship’s delivery to its charterer, 93% of its fleet will be operating under long-term to medium time charter agreements.
The CEO concluded that the consistent implementation of their strategy provides the company with a lot of value. He confirms that they will continue to look out for opportunities and partnerships that can help further increase the value they offer their shareholders.