Athens-based drybulk shipping firm DryShips has received two firm commitments for senior secured credit facilities of up to an aggregate of USD 125 million.
The facilities will be secured by the company’s four tanker vessels and two Kasmarmax and one Panamax drybulk vessels and will have a tenor of five and six years, respectively.
Both facilities, received from two commercial lenders, will bear an interest rate of LIBOR plus margin, will be repayable in quarterly installments and will have customary financial covenants.
The facilities remain subject to definitive documentation.
Additionally, the company infromed that it reached an agreement to dispose of its 2001-built Panamax vessel, the Ecola, to an unaffiliated buyer.
Sold for total gross proceeds of USD 8.5 million, the bulker is scheduled for prompt delivery to the buyer.
“This year has been transformational for DryShips. We continue to execute on our business plan with the support of our lenders, which is a testament to the strength of the company’s balance sheet,” George Economou, DryShips’ Chairman and Chief Executive Officer, said.
Ship owner and operator GoodBulk informed that it expects to exercise the options to buy six more Capesize vessels for a price of USD 134.2 million.
The latest development comes on the back of the company’s rights offering, which closed on December 20, 2017.
The rights offering of common shares at a subscription price of USD 15.23 per share, directed towards existing eligible shareholders in the company as per December 12, 2017, resulted in received subscriptions for a total of 1,828,952 common shares constituting USD 27.85 million in demand. Of these,1,680,441 shares will be allocated, raising gross proceeds of USD 25.59 million.
GoodBulk said that the additional Capesizes are expected to be funded by a combination of cash on hand, availability under existing and new credit facilities, and issuance of USD 80.4 million of new shares, including 3,727,513 shares to be issued to funds managed by CarVal Investors, and the 1,680,441 offer shares in the rights offering. Net debt as a percentage of gross asset value is expected to remain below 30%.
The units are scheduled to be handed over to their new owner n the first quarter of 2018. Upon delivery of the agreed ships, GoodBulk will control a fleet of 25 dry bulk vessels consisting of 22 Capesize vessels, 1 Panamax and 2 Supramax ships.
The company will issue 494,131 offer shares in the first settlement, with 1,186,310 offer shares expected to be issued in subsequent settlements, to coincide with vessel acquisition closings.
In late October, GoodBulk signed a deal to purchase 7 to 13 Capesizes from entities managed by CarVal Investors.
At the time, the company said that funds managed by CarVal Investors will receive up to 10.5 million common shares in GoodBulk for the initial 7 vessels, with USD 61 million of existing borrowings expected to be refinanced under GoodBulk credit facilities.
Canadian provider of marine transportation services Algoma Central Corporation has reached an agreement with American Steamship Company (ASC) to acquire four river-class vessels.
The company is to acquire the 1978-built M.V. Buffalo, the 1973-built M.V. Adam E. Cornelius, the 1953-built S.S. American Valor and the 1943-built S.S. American Victory.
“The availability of these vessels presented an opportunity to expand Algoma’s vessel fleet and capacity at extremely attractive values,” the company explained.
Buffalo and Adam E. Cornelius will provide capacity for the river-class segment of Algoma’s domestic dry bulk market.
American Valor and American Victory have the potential to be re-powered as motor vessels, converted to articulated tug barges, or have their forebodies mated with existing modern sterns, according to Algoma. However, no immediate plan for these two vessels has been confirmed.
“Delivery of the vessels further solidifies our market position in the river-class segment where we see many opportunities,” Gregg Ruhl, Chief Operating Officer at Algoma, commented.
All four ships are former US flag lakers that will be transferred to the Canadian registry for service in the Great Lakes – St. Lawrence trade.
Hong Kong-based owner and operator of Handysize and Supramax dry bulkers Pacific Basin Shipping Ltd has been linked to the purchase of two Handy bulkers from Clipper Group.
The ships in question are 32,400 dwt Clipper Panorama and Clipper Selo, each bought for USD 10.1 million, data from VesselsValue shows.
The two ships were built in 2011 by Chinese shipbuilder Jiangmen Nanyang.
Clipper Group did not want to comment on the report, while Pacific Basin is yet to provide World Maritime News with a comment on the reported sale.
The Hong Kong-based owner operates a fleet of over 250 ships, including 106 owned ships.
The owned fleet is composed of 80 Handymaxes, 25 Supramaxes and one Post Panamax ship, including newbuildings, based on the data from the company’s website.
Nova Algoma Short-Sea Carriers (NASC) is receiving another member of its fleet as it recently purchased a mini-bulker.
The 13,497 dwt Sider Venture was bought from Norway-based OsloBulk.
The multipurpose vessel is part of a group of six ships built in 2006. Previously named Sian C, the bulker will reunite with its five sister vessels already under NASC’s commercial management.
The move “signifies growth for NASC” and is “a further step towards the consolidation of the short-sea market”, as explained by the company.
Sider Venture, which features a length of 136.4 meters and a width of 21.2 meters, will be the tenth vessel trading in the Mini Grabbers Pool (MGP), a pool of grab-fitted cargo vessels controlled by NASC and operating in the Atlantic, particularly in Europe and the Caribbean.
NASC is a joint-venture between Nova Marine Carriers, based in Switzerland, and Algoma Central Corporation, based in Canada, that focuses on the global short-sea dry bulk shipping market. The joint venture was created in April this year.
Helsinki-based shipping company ESL Shipping has entered into smaller vessel class with ice classed 3,000 dwt ships.
As explained, the move is part of the company’s growth strategy.
Three vessels of the abovementioned class, Baltic Carrier, Baltic Skipper and Capella, joined the company’s fleet in fall this year, while the fourth vessel, Delfin, was added to ESL Shipping’s fleet on December 18.
The smaller vessels support “the flexible customer service”, regardless of the transportation batch size, ESL Shipping said.
“The new operating model allows ESL Shipping to expand into new vessel classes with no major capital investments,” according to the company.
In the operating model that is new to the shipping company, the vessels will be chartered from the market for the transportation volumes. The most sought-after volumes include renewable bioenergy, recycled raw materials, such as recycled energy fuel or steel, wood-based products and grain.
Including the recently added ships, ESL Shipping’s fleet comprises thirteen vessels ranging in size from 3,000 to 56,000 dwt.
Connecticut-based owner and operator of dry bulk vessels Eagle Bulk Shipping has acquired a 2015-built Crown-63 Ultramax bulk carrier.
As informed, the ship was purchased for USD 21.275 million.
Although the name of the ship was not disclosed, VesselsValue’s data shows that Eagle Bulk bought the 2015-built Ultramax bulker Essence of Seatrek from Seatrek Trans on December 13.
The 63,500 dwt vessel was constructed at Yangzhou Dayang Shipbuilding in China, the same yard as the nine Ultramaxes acquired by the company earlier this year, and is of similar design.
The bulker is scheduled to be delivered to the company in January 2018 and will be renamed the M/V New London Eagle, Eagle Bulk said.
Including the M/V New London Eagle, the company’s fleet will comprise 47 vessels, including 12 Ultramaxes purchased over the last 12 months.
Brazilian mining giant Vale has concluded a sale agreement for its two final very large ore carriers (VLOCs) with China’s Bank of Communications Finance Leasing (Bocomm).
The parties agreed a price tag of USD 178 million for the two 400,000 dwt Valemax bulkers. Data provided by VesselsValue shows that the ships in question are the 2012-built Shandong Da Ren and Shandong Da Zhi.
Constructed by South Korean Daewoo shipyard, the VLOCs have a market value of USD 61.8 million and USD 62.8 million respectively.
The amount agreed under the deal was received by Vale at the delivery of the vessels on December 7, the mining giant said.
With the transaction, Vale has finalized the sale of all 19 VLOCs it owned as part of its strategy to strengthen the balance sheet and focus on core assets.
In August 2017, the company sold the 2012-built Shandong Da Cheng and the 2011-built Shandong Da De to China’s Bocomm for USD 90.8 million and USD 87.2 million, respectively.
As part of its fleet renewal program, Norway-based shipping company Ugland Shipping AS has decided to acquire two Ultramax resales being built at Asian shipyards.
The company has signed a resale contract with Japanese shipbuilder Sanoyas Shipbuilding for a 60,500 dwt bulk carrier. Slated for delivery in 2020, the vessel will be a sister vessel to Olita and Belita, delivered from the same shipyard earlier this year, according to the company.
Furthermore, Ugland Shipping has also inked a resale deal with Tsuneishi Cebu shipyard in the Philippines for a TESS-64 type bulk carrier. The ship is scheduled for delivery in the second half of 2019.
“With these two resale contracts and the newbuilding from Imabari Shipbuilding due to be delivered in the beginning of 2019, we now have three bulker newbuildings to be delivered in the period 2019-2020,” the company said.
As informed, Ugland Marine Services will be in charge of all management functions for the new vessels.
The company added that it plans to sell one or more of its oldest bulkers before it takes delivery of the newbuildings.
Monaco-based container shipping company Navios Maritime Containers has taken delivery of APL Denver, the first of four 2008-built Panamax boxships it agreed to buy.
As informed, the remaining three vessels are expected to be delivered by mid-December.
APL Denver was previously owned by Germany-based Hanseatic Lloyd KG, VesselsValue’s data shows. Apart from APL Denver, Hanseatic Lloyd’s fleet is comprised of three more identical vessels.
Navios Containers agreed to acquire the four 4,730 TEU containerships for a total purchase price of USD 96.8 million. These vessels are employed on charters with a net daily charter rate of USD 27,156.
The charters expire in 2020 and are expected to generate approximately USD 70 million of EBITDA, assuming expenses approximating current operating costs and 360 revenue days per year, Navios Containers said.
Following the completion of this acquisition, Navios Containers will control a fleet of 20 vessels, totaling 84,520 TEU with a current average fleet age of 9.8 years.
Navios Containers ended its first full quarter of operation with a net income of USD 84,000 as it continued with fleet expansion efforts.
Since its inception on April 28 this year to September 30, 2017, the company recorded a net income of USD 965,000, while its revenue for the period stood at USD 17.8 million.