P&O Clinches Mega Sale and Leaseback Deal

In a mega ship finance deal worth £400 ($708m), premier UK shipping and transport group P&O has sold and leased back 33 of its 128 ships. The vessels involved in the deal include 11 deep sea container vessels, 15 vessels operated by P&O European Ferries, and four cruise ships. The main financing group is Howell Shipping, the front for a consortium of banks, which has acquired 14 of the ships, including most of the ferry vessels. However, two of the vessels have been lease purchased, so P&O will retain title on the residual value of the ships.

The nine ships refinanced by Abbey National March Leasing (ANML) include the cruise ship Canberra, six ferries and two containers ships. ANML is an interesting participant, as it is the leasing arm of Abbey National, which changed its status from building society to bank a few years ago, and is a newcomer to shipleasing. A spokesman for the company declined to comment on the details of the deal, but told Marine Money, “We do not have a particular view on ship leasing, but assess each case on the credit status of the lessee.” The remaining participants are Barclays Bank interests and Natwest Specialist Finance, which has acquired five large container ships and one ferry.

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