I.M. Skaugen SE and Teekay LNG agrred a deal in which IMS will sell the 10.200 cbm sized LPG/Ethylene carrier Norgas Napa to a subsidiary of Teekay for $27 million.
The vessel will be delivered to Teekay within November 2014, and immediately thereafter redelivered to IMS pursuant to a bareboat charter party for 5 years. The bareboat charter party is fixed-rate plus a profit sharing mechanism linked to the actual Time Charter earnings of the vessel. The vessel will continue as participant of the Norgas Revenue Sharing Pool and it will be managed by Norgas Carriers.
The net cash flow from the sale of Norgas Napa of about USD 21.6 mill, will be used to reduce corporate debt associated with the vessel and other corporate purposes, IMS said in a statement.
With this transaction, IMS will have 6 vessels on long term bareboat charters from Teekay.
Press Release; Image: IMS