Published 2016-11-17 00:00:00
Stolt-Nielsen Limited's Acquisition of Jo Tankers approved
Stolt-Nielsen Limited's Acquisition of Jo Tankers

Stolt-Nielsen Limited (Oslo BÝrs: SNI) announced today that it received unconditional Competition Authority approvals of the Company's previously announced plans to acquire the chemical tanker operations of Jo Tankers. The acquisition is expected to be finalized before the end of November.

The transaction comprises 13 chemical tankers and a 50% share in a joint venture with eight chemical tanker newbuildings, representing an enterprise value of $575 million. The acquired ships would satisfy the tonnage-replacement needs of the Stolt Tankers' fleet for the next several years and add new trade routes that enhance the Company's global service capabilities.

Funding for the transaction has been secured through Stolt-Nielsen Limited's main commercial banks with a combination of bridge financing, secured term loans and corporate funds. The financing of the ships in the joint venture will be off balance sheet. The net addition to SNL's debt from this transaction will be about $465 million. Following the transaction, available liquidity for the Company will be approximately $300 million.
The 13 chemical tankers consist of eight all stainless steel ships, ranging from 19,000 dwt to 38,000 dwt, and five ships with a combination of stainless steel and coated tanks, all of approximately 37,000 dwt. Six of the 13 ships have been on time charter to Stolt Tankers for the last five years. The newbuildings included in the transaction consist of eight all stainless steel eco-friendly ships of 33,000 dwt on order from New Times Shipbuilding in China, the first of which was delivered in early July 2016. The seven remaining newbuildings are to be delivered in the second half of 2016 and in 2017.

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