General Maritime sells tankers for $41.1 million, enters leaseback agreement, may repurchase

By Lisa Kerner

Charlotte, N.C., Feb. 3 - General Maritime Corp. completed the sale of the first two of three product tankers, the 2004-built Genmar Concord and the 2005-built Stena Contest, to affiliates of Northern Shipping Fund Management Bermuda, Ltd. for net proceeds totaling $41.1 million.

The sale of the third product tanker, the 2005-built Stena Concept, to an affiliate of Northern Shipping for proceeds of $21 million is expected to be completed by Feb. 15, according to a General Maritime news release.

Proceeds from the vessel sales will be used to repay the company's $22.8 million bridge loan in the first quarter of 2011.

The Genmar Concord and Stena Contest have been leased back to General Maritime for a period of seven years at a rate of $6,500 per day per vessel for the first two years and $10,000 per day per vessel for the remainder of the charter period.

General Maritime said it expects to enter into a similar leaseback agreement following the sale of the Stena Concept.

According to General Maritime, it will have options to repurchase the three vessels for $24 million per vessel at the end of year two of the charter period, $21 million per vessel at the end of year three, $19.5 million per vessel at the end of year four, $18 million per vessel at the end of year five, $16.5 million per vessel at the end of year six and $15 million per vessel at the end of year seven.

General Maritime is a New York-based provider of international seaborne crude oil transportation services.

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