Tufton Oceanic invests US$12.9m in a Handysize Bulk Carrier – Tufton Oceanic Assets (SHIP) has agreed to acquire a Handysize Bulk Carrier for $12.9m.
What is a Handysize Bulk Carrier?
Handysize is a naval architecture term for smaller bulk carriers or oil tanker with deadweight of up to 50,000 tonnes. Their small size allows Handysize vessels to enter smaller ports to pick up cargoes, and because in most cases they are ‘geared’ – i.e. fitted with cranes – they can often load and discharge cargoes at ports which lack cranes or other cargo handling systems.
The ship
The vessel will have a time charter of 2-2.5 years to a leading operator of handysize bulkers. The yield is in line with the targets expressed in the Tufton’s prospectus.
Further acquisitions
The company has made seven investments since IPO and is now fully invested. Tufton Oceanic Limited, the investment manager, continues to identify an attractive pipeline of opportunities across a range of the company’s target sectors. In order to capitalise on these opportunities and grow the portfolio, the company recently announced its intention to raise further capital through an issue of C Shares. A further update will be announced before the end of September.
More on Tufton Oceanic Assets
Tufton Oceanic Assets aims to provide investors with an attractive level of regular and growing income and capital returns through investing in a diversified portfolio of secondhand commercial sea-going vessels. The company makes investments through one or more underlying SPVs.
The company is targeting an initial dividend yield of 5% during the first 12 months following admission rising to a target dividend yield of 7% thereafter. The dividend is expected to grow modestly over the long term. The company will target an IRR of 12% per annum (net of expenses and fees) on a NAV basis on the issue price over the long term.
You can access the fund’s website here
SHIP : Tufton Oceanic invests US$12.9m in a Handysize Bulk Carrier