CSSC enters into lease and buyback agreement worth USD 40 million with Star Bulk for the acquisition of the vessel Star Marisa (HN 1359)

In 2013, CSSC (Hong Kong) Shipping Co., Ltd. (CSSC) and Star Bulk Carriers (Star Bulk) entered into a sale and leaseback agreement worth USD 40 million for the acquisition of the Star Marisa (HN 1359) shipping vessel, owned by Star Bulk. The vessel was leased back to Star Bulk for a period of 10 years in a bareboat charter agreement, with an unknown variable interest rate. The agreement allows for purchase options that can be exercised by Star Bulk monthly at any point throughout the 10-year bareboat charter agreement. Upon the 10-year anniversary of the vessel’s delivery, Star Bulk is obligated to buyback the ship at a price of USD 12 million. The Star Marisa was delivered to Star Bulk on March 11, 2016.

Additional details

1. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 2. A "bareboat charter" is a charter in which the owner of the boat (in this case, CSSC) leases only the vessel (with no crew) to the charterer or lessee (in this case, Star Bulk).

Number of official sources

3

Number of total sources

3