XML 19 R13.htm IDEA: XBRL DOCUMENT v3.23.3
Finance Liabilities
 6 Months Ended
Jun. 30, 2023
Finance Liabilities  
Finance Liabilities
6.
 
Finance Liabilities
The amount
 
of finance
 
liabilities shown
 
in the
 
accompanying consolidated
 
balance sheet
 
is analyzed
 
as
follows:
June 30, 2023
December 31, 2022
Finance liabilities
137,934
142,370
Less: Deferred financing costs
 
(1,323)
(1,439)
Finance liabilities, net of deferred financing costs
$
136,611
$
140,931
Less: Current finance liabilities, net of deferred financing
 
costs,
current
(9,020)
(8,802)
Finance liabilities, excluding current maturities
$
127,591
$
132,129
On March 29, 2022, the Company sold
Florida
 
to an unrelated third party for $
50,000
 
(Note 3) and leased
back the
 
vessel under
 
a bareboat
 
agreement, for
 
a period
 
of
ten years
, under
 
which the
 
Company pays
hire,
 
monthly
 
in
 
advance.
 
Under
 
the
 
bareboat
 
charter,
 
the
 
Company
 
has
 
the
 
option
 
to
 
repurchase
 
the
vessel after the end of the third
 
year of the charter period, or each year
 
thereafter, until the termination of
the
 
lease,
 
at
 
specific
 
prices,
 
subject
 
to
 
irrevocable
 
and
 
written
 
notice
 
to
 
the
 
owner.
 
If
 
not
 
repurchased
earlier,
 
the
 
Company
 
has
 
the
 
obligation
 
to
 
repurchase
 
the
 
vessel
 
for
 
$
16,350
,
 
on
 
the
 
expiration
 
of
 
the
lease on the tenth year.
 
On August 17, 2022, the
 
Company entered into
two
 
sale and leaseback agreements with two
 
unaffiliated
Japanese
 
third
 
parties
 
for
New
 
Orleans
 
and
Santa
 
Barbara,
for
 
an
 
aggregate
 
amount
 
of
 
$
66,400
.
 
The
vessels were delivered
 
to their buyers
 
on September 8,
 
2022 and September 12,
 
2022, respectively and
the Company
 
chartered in
 
both vessels
 
under bareboat
 
charter parties for
 
a period
 
of
eight years
, each,
and has purchase options beginning at the end of the
 
third year of each vessel's bareboat charter period,
or
 
each
 
year
 
thereafter,
 
until
 
the
 
termination
 
of
 
the
 
lease,
 
at
 
specific
 
prices,
 
subject
 
to
 
irrevocable
 
and
written notice to the
 
owner.
 
If not repurchased earlier,
 
the Company has the
 
obligation to repurchase the
vessels for $
13,000
, each, on the expiration of each lease on the eighth year.
On December
 
6, 2022,
 
the Company
 
sold
DSI Andromeda
 
to an
 
unrelated third
 
party for
 
$
29,850
 
(Note
3)
 
and leased
 
back the
 
vessel
 
under a
 
bareboat agreement,
 
for
 
a period
 
of
ten years
,
 
under which
 
the
Company
 
pays
 
hire,
 
monthly
 
in
 
advance.
 
Under
 
the
 
bareboat
 
charter,
 
the
 
Company
 
has
 
the
 
option
 
to
repurchase the
 
vessel after
 
the end
 
of the
 
third year
 
of the
 
charter period,
 
or each
 
year thereafter,
 
until
the
 
termination of
 
the
 
lease, at
 
specific prices,
 
subject to
 
irrevocable and
 
written notice
 
to
 
the
 
owner.
 
If
not
 
repurchased
 
earlier,
 
the
 
Company
 
has
 
the
 
obligation
 
to
 
repurchase
 
the
 
vessel
 
for
 
$
8,050
,
 
on
 
the
expiration of the lease on the tenth year.
Under the bareboat charter parties, the Company is responsible for the operation and maintenance of the
vessels and the
 
owner of the
 
vessels shall not
 
retain any control,
 
possession, or command of
 
the vessel
during the charter period.
The
 
Company
 
determined that,
 
under
 
ACS
 
842-40
 
Sale
 
and
 
Leaseback
 
Transactions,
 
the
 
transactions
are
 
failed
 
sales
 
and
 
consequently the
 
assets
 
were
 
not
 
derecognized from
 
the
 
financial
 
statements
 
and
the proceeds from the
 
sale of the vessels
 
were accounted for as financial
 
liabilities. As of June
 
30, 2023,
the
 
weighted
 
average
 
remaining
 
lease
 
term
 
of
 
the
 
above
 
lease
 
agreements
 
was
8.20
 
years
 
and
 
the
average interest rate was
4.83
%.
As of
 
June 30,
 
2023, and
 
throughout the
 
term of
 
the leases,
 
the Company
 
has annual
 
finance liabilities
as shown in the table below:
Period
Principal Repayment
Year 1
$
9,244
Year 2
9,606
Year 3
10,012
Year 4
10,438
Year 5
10,916
Year 6 and
 
thereafter
87,718
Total
$
137,934