Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces that it has successfully contracted to acquire seven Japanese-built geared Handysize bulk vessels, ranging in size from 28k - 37k DWT, for an aggregate consideration of US$107.8m in cash, according to the company's release. These vessels will be paid for using a combination of the proceeds of the US$75m equity issue which TMI undertook in July, its revolving credit facility, existing cash balances and operating cash flows. Delivery of the vessels is expected between September 2021 and January 2022.
On average the seven vessels have been acquired at below 90% of depreciated replacement cost. All seven vessels will be charter-free on delivery and therefore available to take advantage of the current strong charter market.
These vessel acquisitions bring TMI's total delivered and undelivered fleet to 32 vessels and also reduce the average age of the fleet to 10 years.
About Taylor Maritime Investments
Taylor Maritime Investments Limited is a recently established, internally managed investment company listed on the Premium Segment of the Official List and traded on the Main Market of the London Stock Exchange. The Company invests in a diversified portfolio of vessels which are primarily second-hand and which, historically, have demonstrated average yields in excess of the Company's target dividend yield of 7% p.a. and were acquired at valuations that are expected to be below long-term average prices.
The Company's initial investments comprise Geared Bulk Carriers (Handysize and Supramax types) employed utilising a variety of employment/Charter strategies.
The Company intends to pay dividends on a quarterly basis with dividends declared in January, April, July and October. The Company expects to declare its first dividend of 1.75 cents per Ordinary Share for the initial period ended 30 September 2021 in October 2021. Once the Company is fully invested, the Company will target a Total NAV Return of 10 to 12% p.a. (net of expenses and fees but excluding any tax payable by Shareholders) over the medium to long term.
The Company has the benefit of an experienced Executive Team led by Edward Buttery. The Executive Team have to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping). Taylor Maritime's team of experienced industry professionals are based in Hong Kong and London.
About Geared vessels
The Company specializes in the acquisition and chartering of vessels in the Handysize and Supramax bulk carrier segments of the global shipping sector. These "Geared" vessels, which have their own loading equipment, are mostly acquired second-hand, leveraging valuations that are well below long-term average prices. The Handysize market segment is particularly attractive, given the flexibility, versatility and port accessibility of these vessels which carry necessity goods - principally food and products related to infrastructure building - ensuring broad diversification of fleet activity.