Star Bulk to buy 11 Kelso bulkers
(Posted on 30/05/19)
Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes has announced that it has entered into an en-bloc definitive agreement with entities controlled by Delphin Shipping LLC, an entity affiliated with Kelso & Company, pursuant to which the Company will acquire eleven operating dry bulk vessels for an aggregate purchase price of $139.5 million, payable in the form of a) $80.0 million in cash and b) 4.503 million common shares of Star Bulk. The Company has secured exhaust gas cleaning systems for all of the Vessels with attractive delivery dates. The cash portion of the Purchase Price will be financed through proceeds of a new seven-year capital lease of up to $93.6 million with China Merchants Bank Leasing, and an additional tranche of $15.0 million for financing of Scrubbers, thus offering approx. $9.0 million of additional liquidity for Star Bulk.
The Vessel Acquisition, which is expected to be consummated in June 2019, remains subject to the execution of definitive finance agreements and customary closing conditions. The technical management of the 11 vessels will remain with an entity affiliated with Technomar, while commercial management will be taken over by Star Bulk. As a result of the contemplated transaction, entities affiliated with Kelso are expected to own approximately 4.6% of the outstanding common shares of the Company. After giving effect to the Vessel Acquisition, Star Bulk will have a fleet of 120 vessels on a fully delivered basis, aggregate 2 cargo-carrying capacity of approximately 13.1 million deadweight tons and vessels with an average age of 7.8 years.
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, Oslo, New York, Cyprus and Geneva. Its common stock trades on the Nasdaq Global Select Market and on the Oslo Stock Exchange under the symbol “SBLK”. On a fully delivered basis, Star Bulk will have a fleet of 120 vessels, with an aggregate capacity of 13.1 million dwt, consisting of 17 Newcastlemax, 19 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 18 Ultramax and 20 Supramax vessels with carrying capacities between 52,055 dwt and 209,537 dwt. Where we refer to information on a “fully delivered basis,” we are referring to such information after giving effect to the delivery of two newbuilding vessels and the successful consummation of the Vessel Acquisition.
Latest News
Piracy at lowest level in decades, but IMB cautions against complacency
(Posted on 16/10/21)The ICC International Maritime Bureau (IMB) has reported the lowest number of reported piracy and armed... Read more
IMO Secretary-General opens WISTA International Conference in Hamburg
(Posted on 16/10/21)WISTA International began their two-day conference in Hamburg on Thursday day (14 October) with discussions... Read more
Norden capitalises on rising dry cargo asset values
(Posted on 13/10/21)NORDEN’s Asset Management division, which handles buying, selling and leasing of dry cargo and... Read more
Dualog Drive data integrates with Microsoft SharePoint
(Posted on 13/10/21)Leading maritime software provider Dualog is delighted to announce a further leap towards the integrated... Read more
Cadets miss out on sea time due to pandemic restrictions
(Posted on 11/10/21)Restrictions on crew change and repatriations are impacting cadets at a time when the shipping industry... Read more
Covid drives demand for crew-change specialists
(Posted on 11/10/21)Crew change specialists are in big demand from shipping companies struggling to get seafarers on or... Read more
World owes debt of gratitude to Ship Masters says Danica
(Posted on 04/10/21)As the international maritime community celebrated World Maritime Day last week and considerd how seafarers... Read more
Promote diversity to attract fresh talent to shipping
(Posted on 04/10/21)Promoting diversity in shipping will help make the industry more appealing to young adults and adolescents... Read more
ESL subsidiary orders six hybrid vessels
(Posted on 29/09/21)ESL Shipping’s Swedish subsidiary AtoB@C Shipping AB has ordered a series of six new, highly energy... Read more
InterManager President calls for ‘one voice’ for shipping
(Posted on 29/09/21)Shipping needs “one voice” to represent it globally and enable the maritime community to... Read more
