Golden Ocean to Buy Two Ice Class Panamax Ships

Golden Ocean Group Limited (Golden Ocean) has entered into an agreement to buy two ice class Panamax vessel built at Pipavav Defence & Offshore Engineering Company (Pipavav). Golden Ocean will take delivery of the vessels ex yard, the first vessel at the start of June and the second vessel during second half of 2013.

In connection with the purchase the seller has provided a 30% seller’s credit towards Golden Ocean for each vessel. The seller’s credit will be repaid over three years in equal installments every January, but the first installment is at earliest 6 months after delivery of the vessel.

The vessels will be named Golden Pearl and Golden Diamond. The vessels have not been part of the Company’s construction program at the yard and are bought from third parties. Golden Ocean has at the same time obtained regular bank financing of 65% of the contract price. Thus the initial cash payment for the Company in 2013 is limited to 5% of the purchase price for each of the vessels. The price of the vessels reflects the current market price, bearing in mind the additional requirements for an ice class vessel.

The Company will in total have 9 fairly identical ice class vessels once these are delivered and see this as an attractive niche. The Company has over time gained experience in how to utilize this type of vessels both commercially and technically.

[mappress]
Press Release, May 27, 2013