Fleetscape provides funding for a two VLCC transaction

In December 2019, Fleetscape completed a sale and leaseback transaction with Advantage Holding LLC (“Advantage”) by acquiring two 2009 built Very Large Crude oil Carriers (VLCCs). The proceeds from the transaction were used to acquire the vessels from an unrelated third party. The vessels were acquired at a total acquisition price of US$76 million, and the transactions include purchase obligations by Advantage at the end of the five-year charter period. The transaction included a US$56 million senior loan facility from CIT Group, Inc.

Established in 2014, Advantage acts as a holding company for eighteen single-purpose vessel owing entities; its majority shareholder is Mrs Nazli Williams. Advantage is incorporated in the Republic of the Marshall Islands with executive offices in Geneva and London.

This transaction is the third financing extended by Fleetscape to Advantage, building upon the strong relationship between the two companies. The strong relationship reflects Fleetscape’s belief in the company’s management team and its ability to efficiently and profitably manage tanker vessels in the current competitive market environment.

Fleetscape provides funding for 1 LR1 and 2 MRs

In September 2019, Fleetscape completed its first Sale and Leaseback (“SLB”) transaction with Union Maritime Limited (“UML”) by acquiring an LR1 Product Tanker. The proceeds from the transaction were used to repay existing debt on the vessel, and release equity towards new acquisitions. Part of the proceeds were utilized to acquire two MR2 Product Tankers in January 2020. The vessels were acquired in a back-to-back SLB with Fleetscape and placed under a cross collateralised structure with the LR1 Product Tanker. The total acquisition price of the vessels was US$30.8 million, and the transactions include purchase obligations by UML at the end of the four/five-year charter period.

Union Maritime is the largest independent UK based tanker owner and operator, with a fleet in excess of 60 vessels. Its operations include ship-owning, technical and commercial management, agency and fully integrated logistics management.

Fleetscape provides $190 million on a ten vessel transaction

In February 2019, Fleetscape agreed to acquire five aframax tankers and five suezmax tankers built 2009-2012 in sale and leaseback transaction with Advantage Tankers LLC (“Advantage”).

Total acquisition price was US$323 million. The vessels were leased back to the seller on a five-year basis with a purchase obligation at maturity. The vessels, which are time chartered to an international oil company, were financed by a US$190 million senior syndicated loan led by Crédit Agricole Corporate and Investment Bank and BNP Paribas and a US$75 million junior loan led by Fleetscape.

Fleetscape has subsequently increased the financing transaction by US$16.4m to fund the installation of scrubbers on seven of the vessels.

Established in 2014, Advantage acts as a holding company for thirteen single-purpose vessel owing entities; its majority shareholder is Mrs Nazli Williams. Advantage is incorporated in the Republic of the Marshall Islands with executive offices in Geneva and London.