Gram Car Carriers AS

04/25/2022 | Press release | Distributed by Public on 04/25/2022 00:06

Gram Car Carriers supports the formation of Global Auto Carriers, focused on next generation multifuel vessels, and will act as commercial manager for its fleet of newbuilds

Gram Car Carriers supports the formation of Global Auto Carriers, focused on next generation multifuel vessels, and will act as commercial manager for its fleet of newbuilds

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25 Apr 2022 07:59 CEST

Company Name

GRAM CAR CARRIERS ASA

ISN

NO0011109563

Market

Euronext Growth

Symbol

GCC

Oslo, 25 April 2022: Gram Car Carriers ASA ("GCC") is pleased to announce the
formation of Global Auto Carriers AS ("GAC") for the purpose of ordering four
7,000 CEU dual fuel Pure Car Truck Carriers (the "Initial Vessels") from China
Merchants Jinling Shipyard (Weihai) Co., Ltd. GAC will hold options for an
additional 2+2 vessels at the same yard (the "Option Vessels", and together with
the Initial Vessels, the "Vessels").

GAC 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.

For further information, please contact:

CEO Georg A. Whist
Telephone: +47 41 60 16 81
E-mail: [email protected]

CFO Gunnar S. Koløen
Telephone: +65 9176 6661
E-mail: [email protected]

About Gram Car Carriers:
GCC is the world's third-largest tonnage provider within the Pure Car Truck
Carriers (PCTCs) segment with 18 vessels, across the Distribution, Mid-size and
Panamax segments. The Company serves as a trusted provider of high-quality
vessels and logistics solutions ensuring safe, efficient and punctual shipment
of vehicles for a network of clients comprising of major global and regional
PCTC operators.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and subject to the disclosure requirements pursuant to
Section 5-12 the Norwegian Securities Trading Act. This stock exchange release
was published by Mas Gram, Head of Projects at Gram Car Carriers, on 25 April
2022 at 07.59 CEST.

More information:
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Source

Gram Car Carriers ASA

Provider

Oslo Børs Newspoint