NewLead Holdings Ltd. announces delivery of one eco-type Handysize vessel
NewLead Holdings Ltd. announced today that the "Newlead Albion", a 2012-built dry-bulk eco-type Handysize vessel of 32,318 dwt, was delivered to NewLead's fleet on Monday, May 19, 2014, the company said in its press release.
The Newlead Albion is trading on the spot market and is expected to generate $2.0 million EBITDA per year assuming $1.73 million yearly OPEX.
The Newlead Albion is one of the two eco-type vessels that the Company agreed to acquire in March 2014, as previously announced, for a total acquisition price of $37.0 million, $18.5 million each. Today, the market value of these vessels is estimated to be approximately $20.25 million each. The second vessel is expected to be delivered to NewLead's fleet, as scheduled, in July 2014.
The Company financed the Newlead Albion through a combination of cash and external financing. Specifically, in March 2014, the Company paid a deposit of $1.85 million in cash, and the remaining balance was paid through the combination of cash and 75% financing in a transaction arranged by Pareto Project Finance AS and supported by strong institutional investors.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "We are pleased to announce the delivery of the Newlead Albion, the first vessel to be added to our fleet after our successful restructuring. To receive delivery, we secured financing through a leading shipping and financial institution, demonstrating third party belief in the transformation of NewLead."
Michael Zolotas, added, "We are modernizing our fleet with fuel efficient vessels. The fleet age is being optimized, and employment lifetime is substantially longer. NewLead expects to have three new modern Handysize vessels added to its fleet by the end of August 2014."
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping, logistics and commodity company. NewLead owns two dry bulk Panamax vessels and manages three third party tanker vessels, two small bitumen tanker vessels and one Handysize MR product tanker. The Company expects to take delivery of three modern eco-type dry bulk Handysize vessels, one of which is newbuilding, between May and August 2014. The Company has also signed a term sheet for 75% financing to acquire two dry bulk Panamax vessels. Upon completion of the above acquisitions and together with the vessels under management. NewLead is expected to have a fleet of ten vessels, seven owned and three vessels under management. Furthermore, the Company owns a wash plant and a mine in Kentucky, USA and has been granted access to develop and mine another mine, that includes a CSX rail load facility, the Andy Rail Terminal, in Kentucky, USA. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market.