Star Bulk Takes Delivery of Its Second Post-Panamax Bulk Carrier

Star Bulk Carriers Corp., has taken delivery of M/V Star Sirius, a Post-Panamax bulk carrier of approximately 98,000 deadweight tons carrying capacity. The Star Sirius is the second of the two modern Post-Panamax bulk carriers to be delivered to the company, pursuant to the relevant binding agreements announced on January 29, 2014.

The vessel has commenced a time charter with the sellers of the vessel, Glocal Maritime Ltd, for a period between 28 months to 32 months, at a gross daily hire rate of $15,000 less a 1.25% address commission on gross revenues. The vessel is expected to generate approximately $12.4 million in charter revenues over the minimum contracted period.

Inclusive of the acquisition of M/V Star Sirius, Star Bulk owns seventeen dry bulk vessels, consisting of five Capesize, two Post-Panamax, two Ultramax and eight Supramax vessels with average age of approximately 8.9 years.

In addition, Star Bulk has entered into definitive contracts for the construction of eleven, fuel efficient, dry bulk vessels, at high quality shipyards in Japan and China, including five Newcastlemax, two Capesize and four Ultramax vessels, with expected deliveries in 2015 and early 2016.

The company has financed the purchase of the Vessel using cash on hand and expects to refinance 65% of the aggregate purchase price of the vessel and of M/V Star Vega under the previously announced 7-year senior secured credit facility of up to $39.0 million with Deutsche Bank AG. The drawdown of the DB facility is expected to take place in March 2014.

Star Bulk, March 7, 2014