Star Bulk agrees to acquire 34 drybulk vessels
Star Bulk Carriers Corp. announced today that it has entered into definitive agreements with Excel Maritime Carriers Ltd. pursuant to which the Company will acquire 34 operating vessels for an aggregate of 29.917 million shares of common stock of Star Bulk and $288.39 million in cash, the company said in its press release.
Through the Vessel Purchase Transactions, the Company expects to acquire 34 secondhand drybulk carriers, consisting of 6 Capesize vessels, 14 sistership Kamsarmax vessels, 12 Panamax vessels and 2 Handymax vessels mainly built at shipyards in Japan. The Vessels will be acquired in a series of closings which the Company expects to complete by the end of 2014. The closings are expected to occur on a vessel ‐ by ‐ vessel basis, in general upon reaching port after their current voyages and cargoes are discharged.
Upon completion of the Vessel Purchase Transactions, Star Bulk’s position as the largest U.S listed dry bulk company will be further enhanced, with a fleet of 103 vessels on a fully delivered basis and aggregate cargo ‐ carrying capacity of approximately 11.85 million deadweight tons. Star Bulk expects to use cash on hand, together with borrowings under a new $231 million secured bridge loan facility extended to the Company by entities affiliated with the Company’s largest shareholder, Oaktree Capital Management, L.P. , and entities affiliated with Angelo Gordon & Co., both current Excel shareholders, to pay the cash portion of consideration in the Vessel Purchase Transactions.
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products. Following the completion of the Vessel Purchase Transactions, on a fully delivered basis, Star Bulk is expected to have a fleet of 103 vessels, with an aggregate capacity of approximately 11.85 million dwt, consisting primarily of Newcastlemax and Capesize as well as Kamsarmax, Ultramax and Supramax vessels. Star Bulk’s fleet would include 67 operating vessels and 36 vessels under construction at shipyards in Japan and China with expected deliveries during 2014, 2015 and early 2016. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Greece.
