Newlead Modernizes Its Fleet

A 2012-built dry-bulk eco-type Handysize vessel of 32,318 dwt, Newlead Albion was delivered to NewLead Holdings’ fleet on Monday, May 19, 2014.

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 vessel is one of the two eco-type ships that the company agreed to acquire in March 2014 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 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“.

[mappress]
May 20, 2014