MPC Container Ships (MPCC) has completed the purchase of five new eco-design vessels for a total of $136.4 million in an effort to improve the composition of its fleet.
These vessels have existing charter contracts with top-tier counterparties, further strengthening MPCC’s revenue-generating capabilities.
Constantin Baack, CEO of MPCC, said: “We are excited to announce new accretive measures, which align perfectly with our ongoing portfolio optimisation strategy.
“The inclusion of five young, eco-design vessels enhances the overall composition of our fleet and will increase our earnings and distribution capacity in 2023 and onwards.”
Baack added: “Moving forward, our portfolio optimisation strategy will remain centered around upgrading our existing vessels, acquiring modern eco tonnage as well as investing in new buildings with premium earnings capabilities and lower emissions.”
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The newly acquired vessels are reportedly 30 per cent more efficient than conventional designs and are among the top 25 per cent of all vessels in their segment.
They have an average age of 4.6 years and will add approximately 9,250 TEU to the existing fleet.
Following the acquisition, MPCC’s fleet will comprise of 70 vessels, including four new buildings, with an aggregate capacity of 153,294 TEU.
The new vessels are also accretive to earnings per share (EPS) and dividends per share (DPS).
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Under the existing charters, the new vessels are expected to generate EBITDA between $30 and $41 million depending on when the vessels are redelivered.
In conjunction with the acquisition, MPCC has signed a term sheet at attractive terms with a European bank for a $50 million senior secured facility to support the transaction.
In addition, MPCC has secured a competitive lease financing with Bank of Communications (Hong Kong) Limited (BoComm) in the amount of $75 million, which is secured by 12 previously unencumbered vessels.
MPCC aims to maintain a low financial leverage and high financial flexibility, as 22 vessels will remain unencumbered on the balance sheet.
