Genting HK-owned vessel has been sold for a total consideration of €807 million.
Hong Kong.- Genting Hong Kong Ltd, an operator of casino cruise ships and an investor in Asian land-based casinos, has completed the sale and leaseback exercise of its Genting Dream vessel for a total consideration of €807 million.
“Part of the funds received was used for repayment of the outstanding balance of approximately US$502 million (€450 million) in respect of the existing bank loan for Genting Dream,” said Genting Hong Kong in a statement to the press.
The filing identified the purchasers as entities linked to four mainland China-based banks: BCLC SPV, an investment holding company controlled by the Bank of Communications Ltd; CMBFL SPV, a subsidiary of China Merchants Bank Co Ltd; CCBFL SPV, an indirect wholly-owned subsidiary of China Construction Bank Corp; and China Development Bank Financial Leasing Co Ltd.
The deal was first announced in September, and included a “bareboat charter agreement” of Genting Hong Kong’s subsidiary under which the suitors agreed to lease back the vessel to Genting Dream Ltd for a period of 12 years, commencing from the date the ship is delivered to the purchasers.
Under the agreement, Genting Hong Kong is to repurchase the vessel once the 12-year charter period ends. The agreement also states that Genting Hong Kong can exercise a purchase option during the leasing period or that an agent acting on behalf of the purchasers can exercise a put option, allowing it to sell the vessel under certain conditions.
“We are very appreciative of the consortium for supporting Genting Hong Kong in the refinancing of Genting Dream which allows a longer repayment period with a balloon payment at the end of 12 years,” said Lim Kok Thay, Chairman and Chief Executive of Genting Hong Kong, in a filing.
He added: “With the completion of this transaction, the group is now focusing on launching new summer itineraries for Dream Cruises … with exciting new destinations.”
Genting Dream, the first ship of the Dream Cruises brand, made its maiden voyage in April 2017. The vessel is one of three existing cruise ships operated under the Dream Cruises brand.