PIRAEUS, Greece, May 19, 2014 /PRNewswire/ -- NewLead
Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company") announced
today that the "Newlead Albion", a 2012-built dry-bulk eco-type
Handysize vessel of 32,318 dwt, was delivered to NewLead's fleet on
Monday, May 19, 2014.
The Newlead Albion is trading on the spot market and is expected
to generate $2.0 million EBITDA per
year assuming $1.73 million yearly
OPEX.
The Newlead Albion is one of the two eco-type vessels that the
Company agreed to acquire in March
2014, as previously announced, for a total acquisition price
of $37.0 million, $18.5 million each. Today, the market value of
these vessels is estimated to be approximately $20.25 million each. The second vessel is
expected to be delivered to NewLead's fleet, as scheduled, in
July 2014.
The Company financed the Newlead Albion through a combination of
cash and external financing. Specifically, in March 2014, the Company paid a deposit of
$1.85 million in cash, and the
remaining balance was paid through the combination of cash and 75%
financing in a transaction arranged by Pareto Project Finance AS
and supported by strong institutional investors.
Mr. Michael Zolotas, Chairman and
Chief Executive Officer of NewLead, stated, "We are pleased to
announce the delivery of the Newlead Albion, the first vessel to be
added to our fleet after our successful restructuring. To receive
delivery, we secured financing through a leading shipping and
financial institution, demonstrating third party belief in the
transformation of NewLead."
Michael Zolotas, added, "We are
modernizing our fleet with fuel efficient vessels. The fleet age is
being optimized, and employment lifetime is substantially longer.
NewLead expects to have three new modern Handysize vessels added to
its fleet by the end of August
2014."
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is
an international, vertically integrated shipping, logistics and
commodity company. NewLead owns two dry bulk Panamax vessels and
manages three third party tanker vessels, two small bitumen tanker
vessels and one Handysize MR product tanker. The Company expects to
take delivery of three modern eco-type dry bulk Handysize vessels,
one of which is newbuilding, between May and August 2014. The Company has also signed a term
sheet for 75% financing to acquire two dry bulk Panamax vessels.
Upon completion of the above acquisitions and together with the
vessels under management. NewLead is expected to have a fleet of
ten vessels, seven owned and three vessels under management.
Furthermore, the Company owns a wash plant and a mine in
Kentucky, USA and has been granted
access to develop and mine another mine, that includes a CSX rail
load facility, the Andy Rail Terminal, in Kentucky, USA. NewLead's common shares are
traded under the symbol "NEWL" on the NASDAQ Global Select Market.
To learn more about NewLead Holdings Ltd., please visit the new
website at www.newleadholdings.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995
This press release includes
assumptions, expectations, projections, intentions and beliefs
about future events. These statements, as well as words such as
"anticipate," "estimate," "project," "plan," and "expect," are
intended to be ''forward-looking" statements. We caution that
assumptions, expectations, projections, intentions and beliefs
about future events may vary from actual results and the
differences can be material. Forward-looking statements include,
but are not limited to, such matters as the creditworthiness of our
counterparties, the reliability of reserve reports, our ability to
extract or acquire coal to fulfill contracts, the consummation of
conditional contracts, future operating or financial results; our
liquidity position and cash flows, our ability to borrow additional
amounts under our revolving credit facility and, if needed, to
obtain waivers from our lenders and restructure our debt, and our
ability to continue as a going concern; statements about planned,
pending or recent vessel disposals and/or acquisitions, business
strategy, future dividend payments and expected capital spending or
operating expenses, including dry-docking and insurance costs;
statements about trends in the product tanker and dry bulk vessel
shipping segments, including charter rates and factors affecting
supply and demand; expectations regarding the availability of
vessel acquisitions; completion of repairs; length of off-hire;
availability of charters; and anticipated developments with respect
to any pending litigation. 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, management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although NewLead 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 our control,
NewLead cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections described in the forward
looking statements. Important factors that, in our 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
changes in charter rates and vessel values, failure of a seller to
deliver one or more vessels, and other factors discussed in
NewLead's filings with the U.S. Securities and Exchange Commission
from time to time. NewLead 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 NewLead's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
Investor and Media Relations:
Elisa Gerouki
NewLead Holdings
Ltd.
Telephone: + 30 213 014 8023
Email: egerouki@newleadholdings.com
SOURCE NewLead Holdings Ltd.