I did not see that. So two ships stay on charter to August and then SFL gains $23 million. The third ship stays on charter until 'later this year' at which the sale nets, say, another $11.5 million. With the rate picture what it is in H2 2020 I'd guess SFL got a pretty good outcome. Maybe 20% if you add in the net charter revenue?
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announces that it has been notified by Hunter Group ASA (“Hunter”) that it will exercise purchase options on the two VLCCs Hunter Atla and Hunter Saga with delivery in late August.
The transaction is expected to increase SFL’s cash balance by approximately $23 million, and the proceeds are expected to be reinvested in new assets. SFL expects that the purchase option on the third VLCC Hunter Laga on charter to Hunter will be exercised later this year.
Ole B. Hjertaker, CEO of SFLPer Management AS, said in a comment:
“With a versatile toolbox of time charters, bareboat charters and financing structures, SFL stands out as a unique partner to companies in the maritime industry and we see an increasing number of opportunities to deploy capital in our core segments, given the increased need for alternative capital providers in the maritime industry.
The Hunter transaction has been very attractive for SFL as it has generated a strong return on an investment with a very low risk profile. Our ambition is always to structure tailor made chartering or financing arrangements for our customers in combination with attractive risk-adjusted returns for our shareholders, and in this project we agreed on repurchase flexibility in exchange for higher return on capital.”
June 22, 2020
The Board of Directors
SFL Corporation Ltd.