Daily News: May 22, 2014

CIT Completes $49MM Financing with Grieg Star


CIT Group announced that CIT Maritime Finance, with the assistance of RS Platou Finans, completed a $49 million financing through a bareboat charter arrangement with Grieg Shipping II AS, a subsidiary of the Grieg Star Group AS.

The subject vessel was Star Lygra, a 50,700 deadweight tonnage open hatch general cargo carrier. Financing from CIT was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.

“We’re pleased to acquire this state-of-the-art vessel and bareboat charter it to Grieg Star, one of the largest and most reputable owners of open hatch general cargo carriers in the world,” said Svein Engh, managing director and group head of CIT Maritime Finance. “This transaction represents our first financing through a bareboat charter and reflects our ability to structure a tailored financing solution that affords Grieg Star purchase options and increased capital flexibility.”

Founded in 1961, Grieg Star is one of the largest owners of open hatch general cargo carriers in the world. The group owns, manages and operates 34 open hatch general cargo carriers (of which 32 are owned) with sizes between 30,000 and 50,000 dwt.