Seacon Shipping Executes US$107.89 Million Early Buy-Back of Four Tankers, Locks In US$77.52 Million Sale-Leasebacks for Three Vessels

Bulletin Express10-26

Seacon Shipping Group Holdings (Seacon Shipping) has completed two inter-linked major transactions:

1. Early purchase of four 18,500-dwt oil/chemical tankers—Golden Banyan, Golden Cedar, Golden Maple and Golden Olive—from existing lessors for a combined US$107.89 million. Individual option prices range from US$26.73 million to US$27.37 million. The move retires approximately US$106 million of outstanding lease liabilities and incurs an early-purchase fee of roughly US$2 million, which will be booked as finance cost.

2. Immediate back-to-back sale of three of the vessels (Golden Banyan, Golden Cedar, Golden Maple) to three PRC leasing firms—Tianjin Yueyang Jiuhao, Shihao and Shiyihao Ship Leasing—for US$25.84 million each, totalling US$77.52 million. The ships are simultaneously chartered back to Seacon on 120-month bareboat terms featuring: • Fixed hire of US$0.323 million per quarter per vessel, with pro-rata reduction if the actual purchase price drops below US$25.84 million. • Variable hire pegged to three-month Term SOFR plus a 1.65 % margin on the outstanding principal. • Purchase option exercisable any time post-delivery; mandatory repurchase at charter expiry.

A fourth vessel, Golden Olive, entered a separate but concurrent US$25.84 million sale-leaseback with Tianjin Maxwealth Changyang No.4 Leasing, classified as a discloseable—not major—transaction.

Financial impact (HKFRS basis): • Existing borrowings reduced by about US$106 million. • New borrowings rise by approximately US$77 million (three-vessel leases) and US$26 million (single-vessel lease). • Net cash outflow around US$5 million after escrow and transaction settlements. Overall balance-sheet impact deemed immaterial to profit or loss.

Governance: Shareholder approval requirements were met via written consent from the Closely Allied Group, which controls 57.75 % of Seacon’s issued shares, obviating the need for a general meeting.

Strategic Rationale: Management positions the transactions as part of an ongoing fleet-refinancing programme aimed at lowering financing costs, improving liquidity and enabling continued renewal and expansion of Seacon’s controlled tanker fleet.

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