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LONDON, June 1, 2017 /PRNewswire/ -- Navig8 Chemical Tankers Inc. (the "Company") (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced that it has entered into sale and leaseback agreements with CMB Financial Leasing Co. Ltd. ("CMB") for two of the Company's 25,000 DWT Stainless Steel Chemical Tankers (being Navig8 Saiph and Navig8 Sceptrum) (the "Vessels").
The expected net proceeds from the transaction will be $66,849,440. A portion of the proceeds will be utilized to repay existing loans used to finance the Vessels' newbuilding contracts under the bank loan facility announced by the Company on November 3, 2016.
Under the sale and leaseback agreements, the Vessels will be sold and delivered to CMB. The Company has entered into 7-year bareboat charters with CMB for the Vessels. The Company has purchase options to re-acquire the vessels during the charter period, with the first such option exercisable on the third anniversary of the date of delivery of each Vessel to CMB, and obligations to repurchase the Vessels at the end of the bareboat period.
About Navig8 Chemical Tankers Inc.
Navig8 Chemical Tankers Inc. was established in 2013 as a joint venture between the Navig8 Group and funds managed by Oaktree Capital Management L.P. to capitalize on significant structural changes in the petrochemical industry and the continuing development of long-haul chemical trades. Its best- in-class newbuilding fleet is comprised exclusively of large, fuel-efficient vessels with modern eco- designs to take greatest advantage of these shifts. The fully delivered fleet will feature a complementary mix of primarily Interline-coated and stainless steel vessels that are capable of servicing the full range of conventional and specialized chemicals cargoes.
The Company has taken delivery of 31 chemical carriers to date and anticipates delivery of its full 32- vessel fleet by mid-2017. The Company's fleet is contracted to operate in various chemical tanker pools managed by the Navig8 Group, the world's largest independent pool and commercial management company.
Navig8 Chemical Tankers is listed on the Norwegian OTC market under the symbol CHEMS.
Visit our website at www.navig8chemicaltankers.com
Forward-Looking Statements and Distribution
This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Navig8 Chemical Tankers management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Navig8 Chemical Tankers cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the chemicals market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company on the Norwegian OTC trading support system.
This communication is not for publication or distribution, directly or indirectly, in or into any state or jurisdiction into which doing so would be unlawful. The distribution of this communication may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions.
SOURCE Navig8 Chemical Tankers Inc.