MSC is a privately-owned container shipping line. According to Costamare, the purchase of a 2,020TEU vessel, built in 1991, which was acquired for a price of $7.5m. The vessel was delivered on January 7, 2011 and after its scheduled dry-docking is expected to be available to commence service in February 2011.

The purchase of a 1,162TEU vessel, built in 1995, which was acquired for a price of $8.3m. The vessel is expected to be delivered by the end of January 2011. The purchase of a 1,504TEU vessel, built in 1996, which was acquired for a price of $9.5m. The vessel is expected to be delivered before the end of March 2011.

All three second hand vessels have been acquired with own funds.

Costamare has also finalized the financing arrangements for the three new building contracts which were identified in its initial public offering prospectus in November 2010.

The container ships, each with a capacity of about 9,000TEU, will be constructed by Shanghai Jiangnan Changxing Heavy Industry Company for a contract price of $95.08m per vessel and are scheduled to be delivered between November 2013 and January 2014.

Konstantinos Konstantakopoulos, chairman and CEO of Costamare, said: “We are pleased to announce the conclusion of the financing arrangements for the three new building contracts with the participation of some of the most respected Chinese and European financial institutions. These vessels are expected to contribute approximately $460m of contracted revenues.”

Will the deal commercially benefit the firms?

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