The company has also reached an agreement to lease back the ship, which operates for its Dream Cruises brand.
The transaction involves a consortium of four Chinese leasing companies through their special-purpose vehicles indirectly wholly owned by Bank of Communications Financial Leasing Co., Ltd; CMB Financial Leasing Co., Ltd; CCB Financial Leasing Corporation Limited and China Development Bank Financial Leasing Co., Ltd. DNB Markets is acting as adviser to Genting HK.
The transaction is expected to be completed on or around Jan. 15.
The 151,300gt Genting Dream was built in 2016.
Crystal Endeavor sale/leaseback also in the works
Genting HK is also planning to sell and lease back Crystal Endeavor, which is under construction at its MV Werften shipyards for 2020 delivery to Crystal Expedition Cruises. In late December, the newbuild was rolled out of the covered building dock at the Stralsund facility and is now undergoing final outfitting.
The total consideration for Crystal Endeavor is €350m, the price under the shipbuilding contract, and Genting HK said it would finance up to €300m of that.
A circular is expected to be issued by Feb. 21.
Additional working capital
Genting HK said the transactions would provide additional working capital on reasonable terms to support its business activities and capital expenditure while at the same time maintaining the appropriate rights over the vessels, which will strengthen the group’s cash flow.
Besides Crystal Endeavor, Genting HK is currently building two Global-class vessels at MV Werten.
The company said the sale and leaseback of Genting Dream and Crystal Endeavor and its earlier announced disposal of up to 35% equity interest in Dream Cruises are intended to raise funds to substantially finance the construction costs for Crystal Endeavor and the Global-class pair.
The proceeds will also be used for working capital for future operations of the three newbuilds and will provide liquidity to MV Werften.