MPC Container Ships ASA — Capital/Financing Update 2021

Oct 20, 2021

MPC Container Ships ASA secures new financing facility, agrees on sale of six vessels and provides update on charter fixtures

MPC Container Ships ASA secures new financing facility, agrees on sale of six vessels and provides update on charter fixtures

Oslo, 20 October 2021 - MPC Container Ships ASA ("MPCC" or the "Company", and

together with its subsidiaries, the "Group") is pleased to announce the

following measures that will increase the Company's balance sheet flexibility in

order to execute on the Group's plan to commence returning capital to investors.

These changes are consistent with the Company's guidance in previous quarters:

· New bank facility of USD 180 million with HCOB at LIBOR + 335 bps

· More than 30 unencumbered vessels post-closing

· Sale of six vessels between 1,000 and 1,500 TEU agreed for in total USD 135

million

· Seven additional multi-year charter fixtures concluded in historically

strong charter market

· EBITDA backlog from 1 July 2021 onwards currently above USD 700 million

New credit facility

The Company has agreed a USD 180 million five-year senior secured credit

facility (the "Facility") with Hamburg Commercial Bank ("HCOB") at attractive

terms. The Facility consists of a USD 130 million term loan and a revolving

credit facility of USD 50 million.

Constantin Baack, Chief Executive Officer of MPC Container Ships ASA commented:

"We have executed on various measures in order to become a low leverage and high

dividend paying stock. The new financing with HCOB constitutes another important

step of optimizing the balance sheet structure, reducing our cost of debt and

extending debt maturities into 2026. In addition, it creates high flexibility

and optionality based on more than 30 unencumbered vessels following the

refinancing. We appreciate the agility, professionalism and support by HCOB in

arranging the Facility, which puts MPCC in a unique position to fulfil corporate

goals."

Sale of vessels

In order to optimize the fleet composition take advantage of historically high

container ship asset prices, the Group has agreed to sell six smaller vessels

with an average size of 1,200 TEU for a total of USD 135 million, which implies

a significant premium to the current MPCC share price. MPCC's total fleet will

consist of 68 vessels once the six vessels have been handed over to their new

owners.

During Q4 2021, the Company intends to use the Facility, together with parts of

the proceeds from the agreed vessel sales to refinance the existing DNB

acquisition financing, as well as the outstanding USD 204 million bond

financing. As a consequence, the previous acquisition financing with DNB and the

outstanding senior secured bonds will be repaid in full and a significant number

of vessels owned by the Company will subsequently be unencumbered.

Well positioned to return capital to shareholders

"Following our strategy of prudent and rational capital allocation, these

measures are important steps for MPCC to transition from a growth phase to a

very strong value proposition of significant cash generation, good earnings

visibility with strong dividend capacity and a low risk profile. We are very

pleased that the Company is now well positioned to return capital to its

shareholders", CEO Constantin Baack added.

Subsequent to the Q2 reporting on 19 August, the Company has fixed an additional

seven vessels with long periods and attractive rates. The EBITDA backlog has

subsequently increased to above USD 700 million, demonstrating a continuously

strong charter market.

Once executed, the new financing structure of the Group will allow for high

flexibility in capital allocation and a solid foundation for implementing a

sustainable dividend policy. Following the sequencing of repayment and

successful handover of the sold vessels in Q4 2021, the Company expects to enter

a new era of returning capital to shareholders as of Q1 2022 by distributing up

to 75% of net profit by way of dividends and/or share buybacks.

Important notice

This press release does not constitute a notice of voluntary early redemption

for the outstanding bonds, which will be issued in accordance with the terms of

the outstanding bonds.

For further details on the Facility, vessel sales and for an operational update

on the Company please refer to the attached presentation. An investor call will

be hosted on Wednesday 20 October at 10:00 CEST. Please see below for call-in

details. The Facility is subject to customary conditions for documentation and

is expected to be completed by the end of October 2021.

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

Market Abuse Regulation and is subject to disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Andreas Nguyen, Investor

Relations at MPC Container Ships ASA, on 20 October 2021 at 07:00 CEST.

Investor call and webcast:

The Company will host a webcast for the investor call commencing on Wednesday 20

October 2021 at 10:00 hours CEST. The presentation will be made available on the

Company's webpage (https://www.mpc-container.com/investors-and-media/press

-releases/). There will be a Q&A session after the presentation.

The event is being streamed. It is recommended that you listen via your computer

speakers. Please note that for optimal viewing, it is recommended not to use

VPN, but instead to connect directly to the internet. Please disable pop-up

blockers in order to view the content in its entirety.

The live webcast can be accessed through the following link:

https://edge.media-server.com/mmc/p/he4xmzxc

Alternatively, participants may dial in to the earnings call using the below

dial-in information:

Norwegian LocalCall Dial-In (Oslo): +47 23 96 02 64

US LocalCall Dial-In (New York): +1 (631) 510-7495

International/Toll Attendee Dial-In: +44 (0) 2071 928000

Conference ID: 2055597

Further information and contact:

For further information, please contact ir@mpc-container.com.

About MPC Container Ships ASA:

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

provider with a focus on the feeder segment below 5,000 TEU. 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 see our website:

www.mpc-container.com.

***

Forward-looking statements:

This announcement includes forward-looking statements. Such statements are

generally not historical in nature, and specifically include statements about

the Company's plans, strategies, business prospects, changes and trends in its

business, the markets in which it operates and its restructuring efforts. These

statements are made based upon management's current plans, expectations,

assumptions and beliefs concerning future events impacting the Company and

therefore involve a number of risks, uncertainties and assumptions that could

cause actual results to differ materially from those expressed or implied in the

forward-looking statements, which speak only as of the date of this news

release. Consequently, no forward-looking statement can be guaranteed. When

considering these forward-looking statements, you should keep in mind the risks

described from time to time in the Company's regulatory filings and periodical

reporting. The Company undertakes no obligation to update any forward-looking

statements to reflect events or circumstances after the date on which such

statement is made or to reflect the occurrence of unanticipated events. New

factors emerge from time to time, and it is not possible for the Company to

predict all of these factors. Further, the Company cannot assess the impact of

each such factor on its business or the extent to which any factor, or

combination of factors, may cause actual results to be materially different from

those contained in any forward-looking statement.