CDB Leasing enters into a sale and leaseback agreement worth $85.6 million USD with Costamare Inc.'s Cadence Shipping Co. for the acquisition of Hull H1070A (Linked to Record ID#91057, #92463, #91100, and #91127)

Project narrative

On January 14, 2014, China Development Bank Financial Leasing Co., Ltd. (CDB Leasing) entered into a sale and leaseback agreement worth $85.6 million USD with Adele Shipping Co. — a subsidiary of Greek shipping company Costamare Inc. — for the vessel Hull H1068A (MSC Azov) upon its January 14, 2014 delivery. Per the agreement, CDB Leasing purchased H1068A for $85.6 million USD from Adele Shipping, after Adele novated the shipbuilding contract to CDB Leasing, and entered into a bareboat charter agreement for the vessel. During this bareboat charter, Adele Shipping was obligated to pay a fixed daily charter rate on a quarterly basis for 10 years, beginning upon delivery of the ship, and a final balloon payment installment of $25.7 million USD. Costamare Inc. guaranteed the obligations under this sale and leaseback agreement. The obligations were secured by (i.e. collateralized against) a first priority mortgage over Hull H1068A (MSC Azov), charter assignments, account assignments and general assignments of earnings, insurances, and requisition compensation. A portion of the proceeds of this sale and leaseback agreement, as well as the sale and leaseback agreements of equal value and terms for Hulls H1069A (MSC Ajaccio) in March 2014 and H1070A (MSC Amalfi) in April 2014 belonging to Bastian Shipping Co. and Cadence Shipping Co. (both subsidiaries of Costamare Inc.), respectively, were used, upon delivery of the relevant vessel, to prepay the balance of (refinance) a January 14, 2011 $203.343 million USD syndicated loan provided by the Export-Import Bank of China, China Everbright Bank, and DNB NOR Bank ASA to Adele Shipping, Bastian Shipping, and Cadence for the acquisition of Hulls H1068A, H1069A, and H1070A, refinancing that loan. Costamare Inc.'s subsidiaries received a total of $256.7 million USD from these sale and leaseback agreements. The sale and leaseback agreement with Bastian is captured via Record ID#91127; the sale and leaseback agreement with Cadence is captured via Record ID#91129. China Eximbank and China Everbright Bank's collective contributions to the prior 2011 loan are captured via Record ID#91057. As of February 27, 2015, $246 million USD was outstanding under these agreements, and there was no remaining undrawn credit under any of these sale and leaseback agreements.