Star Bulk Acquires Two Post‐Panamax Bulk Carriers
- Business & Finance
Star Bulk Carriers Corp. has entered into binding agreements to acquire two modern Post‐Panamax bulk carriers, the M/V “GL Qushan” and the M/V “GL Daishan”, from an unaffiliated third party for a total consideration of $60.0 million.
Each of the vessels has a carrying capacity of approximately 98,000 deadweight tons and is expected to be capable of transiting the Panama Canal upon its scheduled expansion. The vessels were delivered to their present owners by Tsuneisi Group Shipbuilding Inc. in October and August of 2011, respectively.
The vessels, to be renamed “Star Vega” and “Star Sirius”, are expected to be delivered to Star Bulk by the middle of February 2014 and early March of 2014, respectively. Upon their delivery, the Star Vega and the Star Sirius are scheduled to be chartered back to the seller for a period between 30 months to 34 months and between 27 months to 31 months, respectively, each at a gross daily rate of $15,000 less an address commission of 1.25% on gross revenues. The vessels are expected to generate approximately $13.4 and $12.1 million respectively in charter revenue over the minimum contract periods.
Star Bulk also announced today that it had executed a binding term sheet with Deutsche Bank AG for a new 7‐year senior secured credit facility of up to $39.0 million that will be used to partially finance the acquisition of the Star Sirius and the Star Vega. Entry into this senior secured credit facility is subject to execution of customary definitive documentation for financing transactions of this nature.
Upon the completion of the acquisition of the Star Sirius and the Star Vega, Star Bulk will own 17 dry bulk vessels, consisting of five Capesize, two Post‐Panamax, two Ultramax and eight Supramax vessels with average age of approximately 8.8 years.
In addition, Star Bulk has contracts for the construction of an additional nine vessels at high quality shipyards in Japan and China, including three Newcastlemax, two Capesize and four Ultramax vessels with fuel‐efficient specifications with expected deliveries in 2015 and early 2016.