GRIN - Grindrod Shipping (GRIN) - Grindrod sells vessel exercises option to acquire another

Grindrod Shipping announced the sale of the medium range product tanker, Matuku, for $30 million. The tanker was the last of its medium range tankers as the company completes a shift to dry shipping. Grindrod will exercise a purchase option under her existing lease financing at a cost of $25.4 million netting $4.6 million in cash.Simultaneously, Grindrod is exercising an option to purchase the IVS Pinehurst for $18 million. The Pinehurst is currently being in-chartered. We believe the company will be able to finance the purchase of Pinehurst without seeking external financing given its cash on hand ($100 million at yearend) and expected proceeds from the Matuku sale. Finally, Grindrod agreed to extend the long-term charter of the IVS Crimson Creek for a period of 11-13 months at a net charter-in rate of $26,276 per day. Read More >>