2020 Bulkers Ltd. has entered into an agreement to sell its 2019-built Newcastlemax vessels, Bulk Shanghai and Bulk Seoul, to an unaffiliated third party for a total consideration of US$127.5 million, according to the company's release.
The sale, subject to certain closing conditions, is expected to be finalized no later than May 1, 2024, in accordance with industry standards.
Currently owned by Ocean Yield under a sale leaseback arrangement, the company has exercised its option with Ocean Yield to proceed with the sale. Until the completion of the transaction, 2020 Bulkers Ltd. will retain the vessels' operating cash flow.
It is estimated that, assuming two more China-Australia round voyages for each vessel based on the current FFA curve, the cash flow during this period will amount to approximately US$3.5 million.
Upon the completion of the sale, the company anticipates recognizing a net book gain of approximately US$40 million. Additionally, the transaction is expected to reduce the company's estimated cash breakeven to US$14,500 per day and decrease the average gross debt per vessel from approximately US$25.7 million to approximately US$23.7 million.
2020 Bulkers Ltd. operates eight Newcastlemax dry bulk vessels, all equipped with exhaust scrubber systems.