Safe Bulkers, Inc. Entered into an Agreement for the Acquisition of a Post-Panamax Class Dry-bulk Japanese Vessel with Delive...
December 21 2020 - 9:00AM
Safe Bulkers, Inc. (the Company) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
that it has entered into an agreement for the acquisition of a
Japanese-built, dry-bulk, Post-Panamax class, 87,000 dwt, newbuild
vessel at an attractive price with a scheduled delivery within the
third quarter of 2022. The vessel is designed to meet the latest
requirements of Energy Efficiency Design Index related to Green
House Gas, GHG emissions, ‘EEDI, Phase 3’. It will also comply with
the latest NOx emissions regulation, NOx-Tier III.
In parallel, the Company has entered into an
agreement for a new term loan facility of up to 60% post-delivery
financing of this acquisition, an increase of the commitment under
the existing revolving credit facility from $20 million to $30
million and the extension of its maturity date, initially scheduled
to expire in 2022, by up to 2 years under the same pre-existing
financial covenants. The financing transaction was evaluated
and approved by the Board of Directors of the Company, excluding an
independent member of the Board of the Company, who serves as the
Chief Executive Officer of the financial institution that is the
lender in the transaction.
Presently, the Company’s liquidity stands at
$167.5 million including cash and cash equivalents, restricted
cash and funds available under sale and lease back agreement, new
term loan agreement and the revolving credit facility. Our
aggregate remaining capital expenditure requirements for the
acquisition of this newbuild and the newbuild contracted for in
October 2020 are $51.8 million.
Dr. Loukas Barmparis, President of the Company
commented: "We continue to invest in technologically advanced
vessels complying with the latest environmental regulations in an
effort to renew our fleet. The Company’s capital expenditure
requirements for the purchase of this newbuild are being financed
through the new financial agreements. Safe Bulkers maintains a
strong financial position with liquidity exceeding $167 million,
that provides us with the required financial flexibility, and a
previously announced at the market equity offering, that may be
utilized at stock prices levels and at times that the Company deems
to be appropriate."
About Safe Bulkers, Inc.
The Company is an international provider of
marine drybulk transportation services, transporting bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes for some of the world’s largest users of marine drybulk
transportation services. The Company’s common stock, series C
preferred stock and series D preferred stock are listed on the
NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”,
respectively.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Exchange
Act of 1934, as amended, and in Section 21E of the Securities Act
of 1933, as amended) concerning future events, the Company’s growth
strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters. Words such as “expects,” “intends,” “plans,” “believes,”
“anticipates,” “hopes,” “estimates” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of the Company. Actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, changes in
the demand for drybulk vessels, competitive factors in the market
in which the Company operates, risks associated with operations
outside the United States and other factors listed from time to
time in the Company’s filings with the Securities and Exchange
Commission. The Company expressly disclaims any obligations or
undertaking to release any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
For further information please
contact:
Company Contact: Dr. Loukas
Barmparis President Safe Bulkers, Inc. Tel.: +30 2 111 888 400 +357
25 887 200 E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact: Nicolas Bornozis, President Capital Link, Inc.
230 Park Avenue, Suite 1536 New York, N.Y. 10169 Tel.: (212)
661-7566 Fax: (212) 661-7526 E-Mail:
safebulkers@capitallink.com
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