Benzinga | Apr 26, 2021 07:38AM EDT

Costamare Acquires York Capital Majority Interest in Five 11,000 TEU Containerships with Long-Term Charters; Terms Not Disclosed

Costamare Inc. (the "Company") (NYSE:CMRE) announced today the acquisition of York Capital's 60% equity interest, on average, in five 11,000 TEU containerships, four of which were built in 2017 and one of which was built in 2016. The acquisition brings the Company's ownership interest in these five vessels to 100%.

The five vessels were initially contracted as new buildings in 2013 and 2015 under the joint venture with York Capital. The vessels currently operate under long-term charters, with four of them expiring in 2031 and the fifth one in 2025.

The acquisition has been funded with cash at hand and commercial bank debt provided by leading European and U.S. financial institutions with tenors of up to 10 years.

Management Commentary

Gregory Zikos, Chief Financial Officer of the Company, said: "We are pleased with the conclusion of the transaction with York Capital, which underscores our excellent relationship. The deal provides a successful exit path in this investment for our partner. At the same time, the joint venture continues to own another five vessels and our relationship is ongoing.

The vessels acquired provide us with incremental contracted revenues of approximately US $335 million and have a TEU-weighted average time charter duration of 8.9 years."