General Maritime Corporation has announced that it has completed the previously announced sale of the first two of three product tankers, the 2004-built 'Genmar Concord' and the 2005-built 'Stena Contest', to affiliates of Northern Shipping Fund Management Bermuda.
General Maritime received net proceeds of US$41.1 million for the two vessels. General Maritime expects to complete the sale of the third product tanker, the 2005-built 'Stena Concept', to an affiliate of Northern Shipping by February 15, 2011, generating net proceeds of $21.0 million. Upon completing the sale of the 'Stena Concept', General Maritime will have received net proceeds of $61.7 million (excluding upfront fees), from this transaction. General Maritime expects to use the proceeds from the vessel sales to repay the company's $22.8 million bridge loan in the first quarter of 2011.
In connection with the sales of the 'Genmar Concord' and the 'Stena Contest', the two vessels have been leased backed to General Maritime under previously announced bareboat charters entered into with the purchasers for a period of seven years at a rate of $6,500 per day per vessel for the first two years of the charter period and $10,000 per day per vessel for the remainder of the charter period.
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