OSLO, NORWAY: Gram Car Carriers ASA (GCC) announced the formation of Global Auto Carriers AS (GAC) for the purpose of ordering four 7,000 CEU dual fuel Pure Car Truck Carriers from China Merchants Jinling Shipyard (Weihai) Co., Ltd. GAC will hold options for an additional 2+2 vessels at the same yard.
Global Auto Carriers AS will be owned by F. Laeisz GmbH, AL Maritime Holding Pte. Ltd, AS Clipper and a subsidiary of Surfside Holding AS, all established international industrial and financial investors with deep shipping knowledge and all current shareholders of GCC.
GCC’s 100% owned subsidiary, Gram Car Carriers Management AS (“GCC Management”), has acted as commercial adviser during the formation of GAC. In consideration, GCC Management will receive warrants enabling an ownership stake in GAC of up to 7.5%. GCC Management will receive a 1% commission of the gross contract price for the Vessels, which will be paid pro-rata in accordance with the yard instalments and be used to settle the exercise of warrants.
Georg A. Whist, the CEO of GCC, commented: “We are proud to have supported the foundation of GAC by leveraging our market connections to create attractive additional revenue streams for GCC and the potential for a meaningful future equity stake. We have done so without adding any capital expenditure, true to our strategy of being a vessel owner with long-term contracts and without diluting our policy of returning a minimum of 50% of EPS to shareholders through quarterly dividends.”
Warrants issued to GCC Management in connection with the financing of instalments for the Initial Vessels must be exercised within 24 April 2027 or the date of delivery of the last Initial Vessel, whichever occurs the earlier.
Warrants issued in connection with the financing of instalments for the Option Vessels must be exercised within 31 October 2027, or the date of delivery of the last Option Vessel, whichever occurs the earlier. The warrants will have a strike price equal to the price per share in capital increases carried out to finance yard instalments, appreciated by 5% per annum.
GCC Management will serve as the commercial manager for the GAC fleet and will receive a lump sum commercial management fee and a 1.0% commission on the time charter earnings from the charters of each respective Vessel. Technical management and yard supervision will be provided by F. Laeisz GmbH.
The board of directors of GCC has approved the nomination by GCC Management of GAC and/or its subsidiaries as buyer(s) under the shipbuilding contracts intended to be entered into with the yard, as well as the terms of the warrants, the commission and the commercial management fee to be received by GCC Management. The board representatives of F. Laeisz GmbH and AL Maritime Holding Pte. Ltd did not take part in the discussions or decisions of these matters.
The shipbuilding contracts for the Initial Vessels are expected to be entered into early Q2 2022, with delivery expected from the fourth quarter of 2025 through the fourth quarter of 2026. Three of the Option Vessels have expected delivery in 2027 and one in 2028.
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