Star Bulk vessel

Star Bulk, ER Capital Waive Four Vessel Options

Greek shipping firm Star Bulk Carriers has reached an agreement with Germany’s E.R. Capital Holding to abandon options related to the acquisition of four Capesize dry bulk vessels.

Image Courtesy: Star Bulk

Pursuant to the development, the company has zero remaining equity capital expenditure due either for vessel acquisitions or for its scrubber program.

The four units were a part of a deal agreed between the parties in late August 2018, under which Star Bulk Carriers was to acquire three firm operating dry bulk vessels within 2018, and four optional operating dry bulk vessels in 2019 from E.R. Capital Holding.

The bulkers in question were ER Bourgogne, ER Brandenburg, ER Brighton, ER America, ER Bayonne, ER Borneo and ER Buenos Aires, all of them constructed in 2010.

The first three units, which were handed over to their new owner in the fourth quarter of 2018, were acquired for an aggregate of around 1.34 million common shares of Star Bulk and USD 41.7 million in cash. The optional ships were expected to join the company’s fleet between early April and mid-July 2019.

Star Bulk Carriers was to pay a price of USD 105.39 million, or USD 26.35 million per vessel, for the options.