Star Bulk announces the acquisition of two modern post ‐ panamax vessels
Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, today announced that it has entered into binding agreements to acquire two modern Post ‐ Panamax bulk carriers, the M/V “GL Qushan” and the M/V “GL Daishan”, from an unaffiliated third party for a total consideration of $60.0 million, the company said in its press release.
Each of the vessels has a carrying capacity of approximately 98,000 deadweight tons and is expected to be capable of transiting the Panama Canal upon its scheduled expansion. The vessels were delivered to their present owners by Tsuneisi Group Shipbuilding Inc. in October and August of 2011, respectively. The vessels, to be renamed “Star Vega” and “Star Sirius”, are expected to be delivered to Star Bulk by the middle of February 2014 and early March of 2014, respectively. Upon their delivery, the Star Vega and the Star Sirius are scheduled to be chartered back to the seller for a period between 30 months to 34 months and between 27 months to 31 months, respectively, each at a gross daily rate of $15,000 less an address commission of 1.25% on gross revenues.
The vessels are expected to generate approximately $13.4 and $12.1 million respectively in charter revenue over the minimum contract periods. Star Bulk also announced today that it had executed a binding term sheet with Deutsche Bank AG for a new 7 ‐ year senior secured credit facility of up to $39.0 million that will be used to partially finance the acquisition of the Star Sirius and the Star Vega. Entry into this senior secured credit facility is subject to execution of customary definitive documentation for financing transactions of this nature. Upon the completion of the acquisition of the Star Sirius and the Star Vega, Star Bulk will own 17 dry bulk vessels, consisting of five Capesize, two Post ‐ Panamax, two Ultramax and eight Supramax vessels with average age of approximately 8.8 years.
In addition, Star Bulk has contracts for the construction of an additional nine vessels at high quality shipyards in Japan and China, including three Newcastlemax, two Capesize and four Ultramax vessels with fuel ‐ efficient specifications with expected deliveries in 2015 and early 2016. 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”. Following the delivery of the two newly acquired vessels, Star Bulk will own a fleet of seventeen dry bulk carriers consisting of five Capesize, two Post Panamax, two Ultramax and eight Supramax dry bulk vessels with a combined cargo carrying capacity of approximately 1,609,519 deadweight tons (dwt) and an average age of approximately 8.8 years.
In addition, Star Bulk provides vessel management services to ten third ‐ party dry bulk vessels, including five Capesize, two Panamax and three Supramax vessels. Star Bulk has also entered into agreements for the construction of nine fuel efficient dry bulk vessels, including three Newcastlemax vessels, two Capesize vessels and four Ultramax vessels, with a combined cargo carrying capacity of 1,227,000 deadweight tons. All of the newbuilding vessels are expected to be delivered during 2015 and 2016.