Star Bulk Inks Restructuring Deal with Lenders

Athens-based dry bulk shipping company Star Bulk Carriers has entered into a restructuring agreement with all 15 of its lenders under which some USD 223.9 million in debt principal repayments would be postponed until June 30, 2018.

The agreement is expected to help the company “successfully weather current market conditions even if they were to last well into 2019,” and positions Star Bulk Carriers to take advantage of a subsequent market upturn, Petros Pappas, Chief Executive Officer of Star Bulk, said.

Additionally, the company launched an underwritten public offering for USD 51.5 million gross proceeds of its common stock, to be used for general corporate purposes.

Oaktree Capital Management, L.P., Caspian Capital LP and the Chief Executive Officer Pappas have indicated that they will purchase common shares with gross proceeds representing their respective pro rata shares of the gross proceeds of the offering, based on their respective current percentage ownership in the company.

Citigroup, Clarksons Platou Securities, Deutsche Bank Securities and DNB Markets are acting as book‐running managers for the offering.

Furthermore, Star Bulk Carriers confirmed that it entered into separate agreements on July 26 and August 10 to sell the vessels Star Monisha and Star Aline respectively. The company said that Star Monisha was delivered to its new owners on August 17, 2016 and the vessel Star Aline is expected to be delivered to its new owners until the end of September 2016.

During the second quarter of 2016, ended June 30, Star Bulk Carriers reported a net loss of USD 32.9 million, against a net loss of USD 65 million seen in the same quarter a year earlier. The company’s total voyage revenues for the period atood at USD 52.6 million, compared to USD 55.7 million for the second quarter of 2015, and the TCE for the corresponding periods was USD 6,463 and USD 8,616, respectively.

The decrease was primarily driven by the lower charter-hire rates prevailing in the dry bulk market during the second quarter of 2016.