Star Bulk Secures Loan to Refinance Newcastlemax Duo
Dry bulk shipping company Star Bulk Carriers has secured a USD 71.4 million term facility for the refinancing of two Newcastlemax-size bulk carriers.
The financing, provided by Skandinaviska Enskilda Banken, also involved partly financing the prospective capital expense for the retrofitting of the ships with scrubbers, ahead of the entry into force of the 2020 IMO regulations.
The units in question are were part of a portfolio of 16 vessels acquired from Augustea Atlantica and York Capital Management in an all-share transaction concluded in May 2018, according to law firm Watson Farley & Williams (WFW).
Star Bulk finalized the acquisition of the Augustea and York Capital dry bulk fleet through an all-share transaction in August 2018.
The final consideration for the Augustea Vessel Purchase was 10.3 million common shares of the company, equal to around 11.3% of Star Bulk’s common shares. As part of the transaction, the company assumed a debt of some USD 309 million.
The 16-strong fleet includes five Newcastlemaxes / Capesize vessels, two Mini Capesize vessels, eight Post Panamax / Kamsarmax vessels and one Ultramax vessel of 4.5 years of average age, built mainly in Japan and Korea.