Star Bulk announces the acquisition of two modern Ultramax vessels
Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, today announced that it has entered into definitive agreements to acquire two modern Ultramax bulk carriers, the M/V “Supra Challenger I ” and M/V “Supra Challenger II” , from an unaffiliated third party for an aggregate total consideration of $58.1 million, the company said in its press release.
The vessels have a carrying capacity of 61, 462 deadweight tons each and were built in Japan by Imabari Shipbuilding Group , in November of 2012 and September of 2013 respectively . The vessels, to be renamed “Star Challenger” and “Star Fighter”, are expected to be delivered to Star Bulk in early December 2013 and by January 15 th , 201 4 respectively . Upon completion of the acquisition, Star Bulk will own 15 dry bulk vessels, consisting of 5 Capesize vessels, 2 Ultramax and 8 Supramax vessels with average age of 9.5 years .
The Company also has a total of 9 vessels under order at high quality shipyards in Japan and China, consisting of 3 Newcastlemax, 2 Capesize and 4 Ultramax vessels with fuel - efficient specifications , with expected deliveries in 2015 and early 2016. The Company plans to finance this acquisition in part through cash on hand and in part through commercial bank debt financing. The Company is currently in discussions with several major lending institutions to secure commercial bank debt financing for the two vessels.
Spyros Capralos, President and CEO of Star Bulk commented: “ It is with great pleasure to announce one more step of the continuing transformation of Star Bulk, started in last July. The two vessels we acquired are considered among the top vessels in their class , as they are built by one of the best shipyards in the world, have average age below one year, high specifications and increased cargo capacity compared to the standard Supramax vessels . Upon full delivery of our 9 newbuildings we will have a total of 24 owned vessels in the water, representing more than 100% growth on deadweight tonnage basis. We rem ain committed in executing our growth strategy, and we believe that this accretive acquisit ion will immediately enhance our cash flow generation capacity and contribute to the long - term value creation for our shareholders. ”
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk’s vessels transport major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Greece. Its common stock trades on the Nasdaq Global Select Market under the symbol "SBLK”. Including the two newly acquired vessels, Star Bulk owns a fleet of fifteen dry bulk carriers consisting of five Capesize, two Ultramax and eight Supramax dry bulk vessels with a combined cargo carrying capacity of approximately 1,413, 525 deadweight tons (dwt) and an average age of approxim ately 9.5 years.