The contracts with an average length of around five years are index linked to the Baltic Capesize 4T/C Index plus a pre-agreed premium.
“Knightsbridge has an option to convert the floating rate into a fixed rate at any time and for any duration at a price to be agreed reflecting the market at the time,” the company said.
The vessels are to be delivered to the charterer over the next five quarters on a to-be-nominated basis.
Knightsbridge said it believed, “the transaction will give the benefits of full time employment for the vessels, the opportunity for earnings to correlate with the market and the possibility to convert the floating contracts into fixed rate ones at a later stage”.
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