Star Bulk Announces the Acquisition of Two Modern Post-Panamax
Vessels With Employment Contracts and Agreement for a New Secured
Credit Facility
ATHENS, GREECE--(Marketwired - Jan 29, 2014) - Star Bulk
Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), 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.
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.
Forward-Looking Statements Matters discussed in this press
release may constitute forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements.
The forward-looking statements in this press release are based
upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, examination by
the Company's management of historical operating trends, data
contained in its records and other data available from third
parties. Although the Company believes that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Company's
control, the Company cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors
that, in the Company's view, could cause actual results to differ
materially from those discussed in the forward-looking statements
include the strength of world economies and currencies, general
market conditions, including fluctuations in charter rates and
vessel values, changes in demand for dry bulk shipping capacity,
changes in the Company's operating expenses, including bunker
prices, drydocking and insurance costs, the market for the
Company's vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, potential disruption of shipping routes due to
accidents or political events, vessels breakdowns and instances of
off-hires and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion
of these and other risks and uncertainties. The information set
forth herein speaks only as of the date hereof, and the Company
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
Contacts: Company: Simos Spyrou CFO Star Bulk Carriers Corp. c/o
Star Bulk Management Inc. 40 Ag. Konstantinou Av. Maroussi 15124
Athens, Greece Email: info@starbulk.com www.starbulk.com Investor
Relations / Financial Media: Nicolas Bornozis President Capital
Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel.
(212) 661-7566 E-mail: starbulk@capitallink.com
www.capitallink.com
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