Fred. Olsen Cruise Lines has bought the Amsterdam and Rotterdam from Holland America Line as it works to modernize its fleet.

The vessels will be renamed MS Bolette and MS Borealis, the company said.

“This acquisition forms part of an optimization of the Fred. Olsen Cruise Lines’ fleet composition and with a high yielding cabin mix and large public spaces, these vessels will enhance Fred. Olsen Cruise Lines’ earnings capabilities once operations can safely resume. Delivery is expected to take place in the UK during September 2020,” said Fred. Olsen in a statement. 

The company said it would retire two vessels in its current fleet, but did not elaborate on which ships would exit. 

The 1997-built Rotterdam and 2000-built Amsterdam will help bring Fred. Olsen’s fleet up to date while also adding considerable capacity as both ships are approximately 1,400 berths.

The current Fred. Olsen fleet is made up the 1972-built Black Watch and Boudicca, the 1993-built Braemar and the 1988-built Balmoral.

“The seller credit will have a 5 years tenor with 3 years of zero amortization and subsequent annual installments of GBP 7.43 million at a 2.5% fixed interest cost, an interest rate which reflects the negotiated parameters of the transaction,” Fred. Olsen stated.