Dryships announces the acquisition of six vessels
DryShips Inc., a diversified owner of ocean going cargo vessels , announced today that it has entered into an agreement with Kalani Investments Limited ( “ Kalani ” ) , an entity that is not affiliated with Dryships, the company said in its press release. Under the agreement Dryships may sell up to $ 226.4 million of its common stock to Kalani over a period of 24 months, subject to certain limitations.
Proceeds from any sales of common stock will be used for general corporate purposes. Kalani has no right to require any sales and is obligated to purchase th e common stock as directed by Dryships, subject to certain limitations set forth in the agreement.
In consideration for entering into the agreement, Dryships has agreed to issue up to $1.5 million of its common stock to Kalani as a commitment fee. No warrants, derivatives, or other share classes are associated with this agreement.
In addition, Dryships has entered into agreements to acquire six vessels for a total gross price of $ 268 million. These vessels are comprised of one Aframax t anker built in 2012, three Kamsarmax dry bulk vessels, one currently under construction and two built in 2014 , and two very large gas carriers (“VLGCs ”) currently under construction pursuant to the previously announced “zero cost” option agreement.
The Aframax and the two second - hand Kamsarmaxes are expected to be delivered in the second quarter of 2017, the newbuilding re - sale Kamsarmax in the third quarter of 2017 and the two VLGCs before the end of the year.
All the vessels are expected to be employed in the spot market except for the two VLGCs that will be employed under ten year charters with a major oil trader with total contracted backlog of about $ 208 million. All of the vessels are being acquired from unaffiliated third parties w ith the exception of the two VLGCs , which will be acquired from entities that are affiliated with the Dryships’s Chairman and CEO , Mr. George Economou.
About DryShips Inc.
Dryships is a diversified owner of ocean going cargo vessels that operate worldwide. Dryships owns a fleet of 13 Panamax drybulk vessels ; four Newcastlemax drybulk vessels, which are expected to be delivered in the second quarter of 2017; three Kamsarmax drybulk vessels, two second - hand vessels expected to be delivered in the second quarter of 2017 and one newbuilding expected to be delivered in the th ird quarter of 2017 ; one very large crude carrier, which is expected to be delivered in the second quarter of 2017; one Aframax tanker newbuilding and one Aframax second - hand tanker, both of which are expected to be delivered in the second quarter of 2017; four VLGC newbuildings, two of which are expected to be delivered in June and September 2017 and the other two before the end of 2017 ; and six offshore support vessels, comprising two platform supply and four oil spill recovery vessels.