MPCC announces new portfolio measures, financing agreements and financial guidance

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PRESS RELEASE

MPC Container Ships (“MPCC” or the “Company”) is pleased to announce a series of strategic measures aimed at further optimizing its portfolio and enhancing its fleet composition. These measures include:

• Acquisition of five modern eco-design vessels for USD 136.3 million
• Term sheet signed for USD 50 million acquisition financing
• Secured USD 75 million lease financing with BoComm for existing fleet
• Commercial agreement for early redelivery of AS Nadia for a cash compensation
• Agreement on sale of AS Emma for USD 22 million with handover in November 2023

As a result of the aforementioned measures, MPC Container Ships raises its financial guidance for FY 2023 to operating revenues of USD 650-670 million (old: USD 610-630 million) and EBITDA of USD 450-475 million (old: USD 420-450 million).

Fleet Acquisition

MPC Container Ships has finalized the acquisition of five modern eco-design vessels for a total price of USD 136.4 million. These vessels have existing charter contracts with top-tier counterparties, further strengthening the Company’s revenue-generating capabilities.

“We are excited to announce new accretive measures, which align perfectly with our ongoing portfolio optimization strategy,” said Constantin Baack, CEO of MPCC. “The inclusion of five young, eco-design vessels enhances the overall composition of our fleet and will increase our earnings and distribution capacity in 2023 and onwards. Moving forward, our portfolio optimization strategy will remain centered around upgrading our existing vessels, acquiring modern eco tonnage as well as investing in newbuildings with premium earnings capabilities and lower emissions.”

The newly acquired vessels are 30% more efficient than conventional designs and are among the top 25% of all vessels in their segment. They have an average age of 4.6 years and will add approximately 9,250 TEU to the existing fleet. Following the acquisition, MPCC’s fleet will comprise of 70 vessels, including four newbuildings, with an aggregate capacity of 153,294 TEU, excl. AS Emma.

The acquisition enhances MPCC’s leading position in the container shipping industry, enabling the Company to seize market opportunities, increase profitability, and deliver sustainable shareholder value. The new vessels are also accretive to earnings per share (EPS) and dividends per share (DPS).

Under the existing charters, the new vessels are expected to generate EBITDA between USD 30-41 million depending on when the vessels are redelivered.

In conjunction with the acquisition, MPCC has signed a term sheet at attractive terms with a European bank for a USD 50 million senior secured facility to support the transaction. In addition, The Company has secured a competitive lease financing with Bank of Communications (Hong Kong) Limited (“BoComm”) in the amount of USD 75 million, which is secured by 12 previously unencumbered vessels.

The financing of the acquisition has been carefully structured to maintain a conservative leverage ratio. Based on pro-forma figures as of March 31, 2023, the Company’s leverage ratio will increase from 15.2% to approximately 25%. Importantly, the Company will maintain a low financial leverage and high financial flexibility, as 22 vessels will remain unencumbered on the balance sheet.

Additional Portfolio Measures

In accordance with the commercial agreement, the Company has successfully negotiated the early redelivery of the vessel AS Nadia. This entails a cash compensation structured in line with previous agreements, as stated in the press release of December 13, 2022. The completion of the redelivery is expected by the end of July 2023. This transaction enables the Company to advance significant cash flows in an accretive way and bolster liquidity. The AS Nadia will continue on a charter contract with MSC for a minimum period ending in December 2023 at a fixed charter rate of USD 20,000 pd.

MPCC further announces an agreement on the sale of vessel AS Emma (4,300 TEU), for a price of USD 22 million with handover scheduled for November 2023 subject to customary conditions for documentation.

Use of proceeds from the redelivery of AS Nadia and the sale of AS Emma to be determined by the Board of Directors following completion of the respective transaction.