The following is the text of a news release from Philly Shipyard (PSI):
(PHILADELPHIA) — Philly Shipyard Inc., a wholly-owned subsidiary of Philly Shipyard ASA, has entered into a letter of intent (LOI) with a blue-chip U.S. shipping operating company for the construction and sale of up to four new, cost-efficient and environmentally friendly containerships with planned deliveries in 2020 and 2021. The LOI marks the entry into the next phase in the transaction process, building on ongoing discussions between the parties. The identity of the shipping operating company is not being disclosed at this time.
Under the terms of the LOI, it is contemplated that the shipping operating company will make an initial order for two 3,700-TEU containerships and receive options to order two additional sister ships. It is intended that these vessels will service the containership trade between the U.S. West Coast and Hawaii.
PSI has already begun construction of the vessels contemplated by the LOI in order to support their optimal delivery dates. These vessels are the continuation of the series of two similar 3,600-TEU Aloha-class containerships currently under construction at PSI for the Hawaii trade lane.
The transaction contemplated by the LOI is subject to agreement by the parties on definitive documents and fulfillment of certain closing conditions. The LOI provides for a period of exclusivity to negotiate and complete this transaction.