Safe Bulkers, Inc. Pursues its Fleet Renewal and Deleveraging Strategy:
May 12 2021 - 9:00AM
Safe Bulkers, Inc. (the Company) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
that in relation to its fleet renewal strategy, it has entered into
agreements: i) for the acquisition of two Japanese-built, dry-bulk,
Post-Panamax class, 87,000 dwt, newbuild vessels at attractive
prices with scheduled delivery dates within the first and the
second quarter of 2023 respectively; ii) for the sale of two
Chinese 2012 built, Kamsarmax class, 82,000 dwt vessels at gross
sale prices of $22.5 and $22.0 million with scheduled delivery
dates within the second and third quarter of 2021 respectively.
The newbuild vessels are designed to meet the
requirements of Energy Efficiency Design Index related to Green
House Gas, GHG emissions, ‘EEDI, Phase 3’ and also comply with the
NOx emissions regulation, NOx-Tier III and will be financed from
the cash reserves of the Company.
In relation to vessel sales the company will pay
prior to each delivery the respective associated debt in the
aggregate amount of $28.0 million. Upon completion of the two sales
the net liquidity is expected to increase by about $16.5
million.
In the context of our deleveraging strategy the
company has scheduled to voluntarily prepay $27.3 million of debt
in May 2021.
The Company’s consolidated debt before deferred
financing costs has been reduced from $607.6 million in March 31,
2021 to $593.7 million as of today. On a pro-forma basis reflecting
the above transactions and the previously announced sale and lease
back agreement for an existing vessel of $24.3 million for the
refinancing of a $16.3 million outstanding term loan facility the
consolidated debt before deferred financing costs is expected to be
further reduced to about $546.4 million.
Dr. Loukas Barmparis, President of the Company
commented: “Safe Bulkers is continuing its renewal strategy since
December 2020, by ordering two additional newbuilds with attractive
delivery dates, bringing their total number to four GHG - EEDI
Phase 3, NOx-Tier III newbuilds and one second hand acquisition and
by selectively selling in total of four older vessels. At the same
time the Company is accelerating its deleveraging, maintaining a
strong liquidity position.”
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 Act of
1933, as amended, and in Section 21E of the Securities Exchange Act
of 1934, 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
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 2 111 888 400Fax: +30
2 111 878 500E-Mail: directors@safebulkers.com
Investor Relations / Media Contact:Nicolas
Bornozis, President Capital Link, Inc.230 Park Avenue, Suite 1536
New York, N.Y. 10169Tel.: (212) 661-7566Fax: (212) 661-7526E-Mail:
safebulkers@capitallink.com
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