Seanergy Announces Delivery of Capesize M/V Flagship
May 11 2021 - 9:15AM
Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”)
(NASDAQ: SHIP) announced today that it has taken delivery of the
176,387 dwt Capesize bulk carrier, built in 2013 by Mitsui
Engineering & Shipbuilding Co., Ltd. in Japan, which was
renamed M/V Flagship (the “Vessel”). The Vessel was subsequently
financed through a leasing agreement with Cargill International SA
(“Cargill” or the “Charterer”). Pursuant to the agreement, the
Company has chartered back the Vessel on a bareboat basis and
subsequently entered into a five-year time charter (“T/C”) with
Cargill at a rate which is linked to the Baltic Capesize Index
(BCI).
Financing Agreement
The bareboat financing amount of the Vessel is
$20.5 million at an implied interest rate of approximately 2%
all-in, fixed for five years. The Company has the option to buy
back the Vessel at any time during the whole five-year leasing
period, at the end of which it has a purchase obligation of $10
million subject to certain adjustments based on the market price of
the Vessel.
Time Charter Agreement
Under the terms of the T/C, the Vessel will earn
an index-linked rate based on BCI, while the Company has the option
to convert the daily hire from index-linked to fixed for a minimum
period of three months to a maximum of 12 months based on the
prevailing Capesize Freight Futures Agreements (“FFA”) curve. The
index-linked rate will be 102% of the BCI minus $1,325 per day. The
term of the T/C matches the term of the leasing transaction and has
a duration of 60 months from the delivery of the Vessel to Cargill
on May 10, 2021.
Energy Saving Devices
In addition, Cargill will fund the equipment and
the installation of certain energy saving devices (“ESDs”) onboard
the M/V Flagship, aimed to increase the Vessel’s energy efficiency
by reducing fuel consumption and subsequently the Vessel’s carbon
footprint. The Company and the Charterer have successfully
implemented a similar project for the M/V Championship in 2019 in a
cooperative scheme pioneered by Seanergy and Cargill.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“We are pleased to announce the delivery of the
thirteenth Capesize vessel and its immediate commencement of period
employment, during the strongest Capesize market of the last
decade. Including this delivery, 84% percent of our fleet is
employed under index-linked time charters.
We are also excited to further expand our
strategic partnership with Cargill with another transaction, which
is very beneficial commercially and environmentally. Cargill is one
of the most prominent charterers with a clearly defined and
actionable environmental and sustainability agenda.
The debt financings we have secured so far for
our recent vessel acquisitions are priced competitively and this
will further reduce the Company’s average cash interest expense.
Moreover, upon the conclusion of this transaction our strong
liquidity position will be further enhanced.
The implementation of our strategic decisions of
the last 6 months has a clear positive impact on Seanergy so far,
and we continuously explore opportunities to further increase value
for our shareholders.”
Company fleet upon vessels’
delivery:
Vessel Name |
Vessel Class |
Capacity (DWT) |
Year Built |
Yard |
Employment |
Partnership |
Capesize |
179,213 |
2012 |
Hyundai |
T/C Index Linked |
Championship |
Capesize |
179,238 |
2011 |
Sungdong |
T/C Index Linked |
Lordship |
Capesize |
178,838 |
2010 |
Hyundai |
T/C Index Linked |
Premiership |
Capesize |
170,024 |
2010 |
Sungdong |
T/C Index Linked |
Squireship |
Capesize |
170,018 |
2010 |
Sungdong |
T/C Index Linked |
Knightship |
Capesize |
178,978 |
2010 |
Hyundai |
T/C Index Linked |
Gloriuship |
Capesize |
171,314 |
2004 |
Hyundai |
T/C Index Linked |
Fellowship |
Capesize |
179,701 |
2010 |
Daewoo |
T/C Index Linked |
Geniuship |
Capesize |
170,058 |
2010 |
Sungdong |
T/C Index Linked |
Goodship |
Capesize |
177,536 |
2005 |
Mitsui Engineering |
Voyage/Spot |
Leadership |
Capesize |
171,199 |
2001 |
Koyo – Imabari |
Voyage/Spot |
Flagship |
Capesize |
176,387 |
2013 |
Mitsui Engineering |
T/C Index Linked |
Hellasship |
Capesize |
181,325 |
2012 |
Imabari |
T/C Index Linked |
Tradership* |
Capesize |
176,925 |
2006 |
Japanese Shipyard |
N/A |
Patriotship* |
Capesize |
181,709 |
2010 |
Japanese Shipyard |
N/A |
Total
/ Average age |
|
2,642,463 |
11.9 |
|
|
*delivery expected by mid-June 2021
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the US. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. Upon delivery of the remaining newly
acquired vessels, the Company's operating fleet will consist of 15
Capesize vessels with an average age of 11.9 years and aggregate
cargo carrying capacity of approximately 2,642,463 dwt.
The Company is incorporated in the Marshall
Islands and has executive offices in Glyfada, Greece. The Company's
common shares trade on the Nasdaq Capital Market under the symbol
“SHIP”, its Class A warrants under “SHIPW” and its Class B warrants
under “SHIPZ”.
Please visit our company website at:
www.seanergymaritime.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates" and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which 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, the Company's operating
or financial results; the Company's liquidity, including its
ability to service its indebtedness; competitive factors in the
market in which the Company operates; shipping industry trends,
including charter rates, vessel values and factors affecting vessel
supply and demand; future, pending or recent acquisitions and
dispositions, business strategy, areas of possible expansion or
contraction, and expected capital spending or operating expenses;
risks associated with operations outside the United States; risks
associated with the length and severity of the ongoing novel
coronavirus (COVID-19) outbreak, including its effects on demand
for dry bulk products and the transportation thereof; and other
factors listed from time to time in the Company's filings with the
SEC, including its most recent annual report on Form 20-F. The
Company's filings can be obtained free of charge on the SEC's
website at www.sec.gov. Except to the extent required by law, the
Company expressly disclaims any obligations or undertaking to
release publicly 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:
Seanergy Investor RelationsTel: +30 213 0181 522E-mail:
ir@seanergy.gr
Capital Link, Inc.Daniela Guerrero230 Park Avenue Suite 1536New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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