MPC Container Ships ASA

Business and Financial Review • Jun 16, 2023

MPCC Announces Portfolio Optimization Measures, New Financing Agreements, and Increased Financial Guidance for FY 2023

MPCC Announces Portfolio Optimization Measures, New Financing Agreements, and Increased Financial Guidance for FY 2023

MPC Container Ships ("MPCC" or the "Company") is pleased to announce a series of

strategic measures aimed at further optimizing its portfolio and enhancing its

fleet composition. These measures include:

· Acquisition of five modern eco-design vessels for USD 136.3 million

· Term sheet signed for USD 50 million acquisition financing

· Secured USD 75 million lease financing with BoComm for existing fleet

· Commercial agreement for early redelivery of AS Nadia for a cash

compensation

· Agreement on sale of AS Emma for USD 22 million with handover in November

2023

As a result of the aforementioned measures, MPC Container Ships raises its

financial guidance for FY 2023 to operating revenues of USD 650-670 million

(old: USD 610-630 million) and EBITDA of USD 450-475 million (old: USD 420-450

million).

Fleet Acquisition

MPC Container Ships has finalized the acquisition of five modern eco-design

vessels for a total price of USD 136.4 million. These vessels have existing

charter contracts with top-tier counterparties, further strengthening the

Company's revenue-generating capabilities.

"We are excited to announce new accretive measures, which align perfectly with

our ongoing portfolio optimization strategy," said Constantin Baack, CEO of

MPCC. "The inclusion of five young, eco-design vessels enhances the overall

composition of our fleet and will increase our earnings and distribution

capacity in 2023 and onwards. Moving forward, our portfolio optimization

strategy will remain centered around upgrading our existing vessels, acquiring

modern eco tonnage as well as investing in newbuildings with premium earnings

capabilities and lower emissions."

The newly acquired vessels are 30% more efficient than conventional designs and

are among the top 25% of all vessels in their segment. They have an average age

of 4.6 years and will add approximately 9,250 TEU to the existing fleet.

Following the acquisition, MPCC's fleet will comprise of 70 vessels, including

four newbuildings, with an aggregate capacity of 153,294 TEU, excl. AS Emma.

The acquisition enhances MPCC's leading position in the container shipping

industry, enabling the Company to seize market opportunities, increase

profitability, and deliver sustainable shareholder value. The new vessels are

also accretive to earnings per share (EPS) and dividends per share (DPS).

Under the existing charters, the new vessels are expected to generate EBITDA

between USD 30-41 million depending on when the vessels are redelivered.

In conjunction with the acquisition, MPCC has signed a term sheet at attractive

terms with a European bank for a USD 50 million senior secured facility to

support the transaction. In addition, The Company has secured a competitive

lease financing with Bank of Communications (Hong Kong) Limited ("BoComm") in

the amount of USD 75 million, which is secured by 12 previously unencumbered

vessels.

The financing of the acquisition has been carefully structured to maintain a

conservative leverage ratio. Based on pro-forma figures as of March 31, 2023,

the Company's leverage ratio will increase from 15.2% to approximately 25%.

Importantly, the Company will maintain a low financial leverage and high

financial flexibility, as 22 vessels will remain unencumbered on the balance

sheet.

Additional Portfolio Measures

In accordance with the commercial agreement, the Company has successfully

negotiated the early redelivery of the vessel AS Nadia. This entails a cash

compensation structured in line with previous agreements, as stated in the press

release of December 13, 2022. The completion of the redelivery is expected by

the end of July 2023. This transaction enables the Company to advance

significant cash flows in an accretive way and bolster liquidity. The AS Nadia

will continue on a charter contract with MSC for a minimum period ending in

December 2023 at a fixed charter rate of USD 20,000 pd.

MPCC further announces an agreement on the sale of vessel AS Emma (4,300 TEU),

for a price of USD 22 million with handover scheduled for November 2023 subject

to customary conditions for documentation.

Use of proceeds from the redelivery of AS Nadia and the sale of AS Emma to be

determined by the Board of Directors following completion of the respective

transaction.

Presentation and webcast:

Please find enclosed a presentation containing comprehensive information on the

new portfolio measures. On Friday, June 16, at 10:00 CEST, the Company will host

a webcast in which CEO Constantin Baack and CFO Moritz Fuhrmann will provide a

detailed update on the transactions. The presentation will be followed by a live

question and answer session.

Access the live webcast through the following link: https://edge.media

-server.com/mmc/p/abc8wk4s

To participate via conference call, please register using the following link:

https://register.vevent.com/register/BI72157b13ae084c2d850027531d3eae13

For further information, please contact:

ir@mpc-container.com

This information is considered to include inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 of the Norwegian Securities Trading Act. This stock exchange

announcement was published by Magnus Granerød at MPC Container Ships ASA, on

June 16, 2023, at 07:00 CEST.

About MPC Container Ships

MPC Container Ships ASA (ticker code "MPCC") is a leading container tonnage

provider focusing on small to mid-size container ships. Its main activity is to

own and operate a portfolio of container ships serving intra-regional trade

lanes on fixed-rate charters. The Company is registered and has its business

office in Oslo, Norway. For more information, please visit www.mpc

-container.com.