Shipowner Peter Pappas recently completed the purchase of the 18 year old combination carrier ex-Garden Green from US shipping company Overseas Shipholding Group for a price estimated to be approximately $10m. The deal was 100% financed by Sanwa Business Credit Corporation, a subsidiary of the Sanwa Bank in Japan.
The loan is a four and a quarter year term loan with a $3.5m balloon payment due at the end. The balloon is based on scrap value of the ship at an estimated price of $115/ton – recent scrapping in India has ranged from $205/ton to $190/ton. In addition, the loan carries a $2.5m personal guarantee from Mr. Pappas. Payments for the first two years are fixed, and Sanwa has the option to accelerate payments in the third year – though, if they do, Mr. Pappas can refinance the loan at that point.
This is only an excerpt of OSG Sells Ship to Peter Pappas
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