Quintana pays CMB US$92.5m for capesize newbuilding
Marshall Islands-registered bulk carrier owner Quintana Maritime has bought a newbuilding capesize bulk carrier under construction at Shanghai Waigaoqiao Shipbuilding Co from Belgian-based CMB for US$92.5m. The 177,000 dwt, to be named Iron Miner, is due for delivery in March next year and has been fixed on a five-year time charter to major capesize market player Transfield, at a net daily rate of US$40,000 with,A statement says: “Quintana Maritime has advanced the sellers a cash deposit of US$9.25m, or 10% of the aggregate purchase price of the vessel, and intends to fund the balance of the purchase price, upon delivery of the ship in March 2007, with borrowings under its existing credit facility, cash on hand, and the proceeds from the exercise of warrants.”It adds: “Quintana expects to partially finance the acquisition with the proceeds from the exercise of approximately 3.2 million warrants, including 1.1 million warrants that have already been exercised, 0.4 million warrants in the process of being exercised, and 1.7 million warrants held by sponsors of the Company. These sponsors, which include affiliates of Corbin J. Robertson, Jr., First Reserve Corporation, and AMCI International, Inc., have expressed their intention to exercise their warrants prior to the delivery of Iron Miner. Certain factors, including a decline in the price of Quintana’s common stock below the exercise price of the warrants prior to the delivery of the vessel, could cause the sponsors not to exercise their warrants. If the sponsors do not exercise the warrants, the company will be required to find an alternative source of financing to pay the balance of the purchase price of the vessel upon delivery.”“Furthermore, a major operator in the Capesize market that operates in excess of 40 Capes. Including the charter on Iron Miner, the Company has secured approximately 90% of 2007 net operating days under time charter contracts, representing approximately $191.0 million in net revenues.
Quintana Maritime’s CEO and president Stamatis Molaris said: "This latest acquisition is consistent with our articulated strategy to expand our presence in the capesize sector, while at the same time securing profitable long term employment opportunities. We believe this acquisition will be an accretive use of the proceeds received or expected to be received from the exercise of approximately 3.2 million warrants out of the total of 8.2 million warrants issued. We remain committed to grow Quintana, within our selected segments, while at the same time we enhance the stability and predictability of our cash flow and earnings."