The New York-listed Costamare Incorporated announced that it has entered into a joint venture Framework Deed with York Capital Management Global Advisors LLC, a New York-based investment advisor firm, to invest jointly up to USD 500 million in equity for the acquisition of container vessels.
Under the Agreement, Costamare Incorporated will hold a minimum 25% participation with an option to increase up to 49% within a pre-determined time period after each acquisition commitment has been agreed upon.
Costamare said that decisions regarding vessel acquisitions will be taken jointly between the two partners.
The joint venture is expected to be each party’s exclusive vehicle for the acquisition of container ships during the two-year investment period and it will have a right of first refusal on any container vessel acquisitions proposed by either party.
The term of the joint venture is six years unless earlier terminated by the parties upon the occurrence of certain extraordinary events or disagreements. Upon any termination of the joint venture, Costamare Inc. will have the right to require a split of the vessel fleet between the parties.
Neither of the parties involved stated whether the plan is to exclusively order newbuildings, acquire second-hand tonnage whether the partners will opt for a mix of the two strategies.