Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) has reached and agreement to purchase two modern Capesize vessels from affiliates of Hemen Holding Limited.
The ships would be bought from the company, indirectely controlled by trusts established by John Fredriksen, at a price of USD 43 million per unit.
"We are pleased to be in the position to acquire high quality, modern Capesize vessels that are expected to generate free cash flow immediately upon delivery. This transaction is consistent with our strategy of focusing our commercial efforts on the vessel segments that we believe will provide the greatest leverage to a recovery in the dry bulk shipping market," Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, said.
As settlement of the purchase price for the ships, Golden Ocean will enter into a non-amortizing seller's credit loan with an affiliate of Hemen for 50% of the purchase price, which bears interest at LIBOR + 3.00% per annum and matures three years after delivery of the vessels.
GOGL informed that the remaining part of the purchase price will be settled on delivery of the vessels with an estimated USD 9 million of cash and an estimated USD 34 million of newly-issued common shares of the company at a per-share price equal to the offer price in an expected equity offering.
The Capesizes are expected to be delivered within four months of the date hereof, Golden Ocean said, adding that the completion of the transaction is subject to completion of an equity offering and entry into the seller's credit loan.
Once the acquisition and expected equity offering is finalized, Hemen, together with certain of its affiliates, will maintain its current ownership percentage of around 34.2% of GOGL's issued and outstanding common shares.
Furthermore, as Golden Ocean's financial position has been enhanced over the past 12 months, the company intends to terminate the covenant waivers related to its recourse debt upon completion of the expected equity offering, Ringstad Vartdal informed.
"This will reinstate the normal covenants, which the company is now in compliance with, and remove the company’s restrictions on new acquisitions, new debt and dividend payments. The waiver structure in the non-recourse debt related to the transactions announced in March 2017 will remain," Ringstad Vartdal said.
Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) has entered into agreements to sell six Ultramax vessels built at Chengxi Shipyard between 2015 and 2017.
The vessel would be sold en bloc for USD 142.5 million. The net cash proceeds from the sale after the repayment of USD 39.2 million of associated debt will be slightly in excess of USD 100 million.
GOGL said that all ships are expected to be delivered to their new owner, an unrelated third party, during the fourth quarter of 2017. Media reports linked the sale to Scorpio Bulkers, however, the company has not yet confirmed the rumors.
Separately, the company informed that it has agreed to take early delivery of the Golden Nimbus, a Capesize vessel under construction at New Times Shipbuilding.
Golden Ocean will make a final payment of USD 29.4 million for the vessel at delivery and will draw USD 25 million from the related bank financing in early October 2017, resulting in a net cash outlay of USD 4.4 million.
Upon delivery, which is expected this month, the vessel will commence a time charter at a gross rate of USD 16,750 per day for a duration of between 14 and 18 months.
Including this charter, the company has taken advantage of recent market strength to fix five of the 44 Capesize vessels in its 2018 operating fleet on charters of one year.
“The sale of these vessels strengthens our commercial focus on Capesize and Panamax vessels, where we have critical mass and that we believe will provide the greatest leverage to a recovery in the dry bulk shipping market,” Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, said.
“It also increases our financial flexibility considerably as the majority of the gross proceeds will directly increase our cash balance. We are also pleased to be in the position to take early delivery of one of our Capesize newbuildings after having secured employment for the vessel at a rate well above our cash break even levels,” Vartdal added.
Norway-based shipping company Songa Bulk ASA is contemplating a tap issue in order to use the net proceeds for the acquisition of additional dry bulk vessels.
The target amount is USD 18 million in the senior secured bond Songa Bulk ASA 17/22 FRN USD C, with a maturity on June 13, 2022.
The current outstanding amount is USD 120 million and the borrowing limit is USD 150 million.
Following a successful tap issue, the company said it will not carry out any additional tap issues.
The company revealed it is also in the process to dispose of one of its Supramax vessels. When concluded, the sales proceeds will be used for further vessel acquisitions, Songa Bulk said.
Songa Bulk has recently bought a number of second-hand vessels, prompted by attractive prices in the dry bulk sector. Earlier this week, Songa Bulk entered into an agreement to acquire a 2012-built Kamsarmax. The latest acquisition brings the company’s fleet to 15 vessels, which resulted in an investment worth USD 279.6 million.
Oslo-listed bulker owner Songa Bulk ASA has entered into an agreement to acquire a 2012-built Kamsarmax bulker built at Tsuneishi in Japan.
Songa Bulk said it would establish a wholly-owned subsidiary to take delivery of the 82,188 DWT vessel, set to take place in October 2017.
The latest acquisition brings the company’s fleet to 15 vessels, which resulted in an investment worth USD 279.6 million.
The vessels include two Capesizes, ten Kamsarmaxes, one Ultramax and two Supramaxes.
The purchase comes on the heels of the buying spree from August when the Norwegian shipowner bought three second-hand Kamsarmaxes.
Prompted by attractive second-hand prices, Songa Bulk announced last month it would be looking into more ship acquisitions.
To this end, the company completed a tap issue of USD 45 million in its Senior Secured Callable Bond Issue, the net proceeds of which have been earmarked for the financing of bulker acquisitions. The total nominal amount outstanding in the bond following the tap issue will be USD 120 million.
GoodBulk Ltd., a recently formed owner and operator of dry bulk vessels, has entered into an agreement to buy a 2007-built Capesize vessel, bringing the total number of vessels acquired since its formation to twelve.
The 177,000 DWT MV IVS Cabernet was built by Namura shipyard in Japan and is expected to be delivered in September 2017 when it would be renamed Aquahop.
The company's growing fleet includes nine Capesize vessels bought at an average purchase price of USD 16.5 million, one Panamax, and two Supramax dry bulk vessels.
During the first six months of this year, GoodBulk, which started operations in December 2016, took delivery of ten vessels which are currently employed in the spot market and expects to take delivery of an additional two vessels in Q3 2017.
"GoodBulk continues to execute upon its strategy of building a leading owner of dry bulk assets and to acquire high-quality second-hand dry bulk tonnage at historically attractive valuations," the company said announcing results for the second quarter of the year.
With respect to financing, the company said that in August 2017, it secured a USD 50 million credit facility with Credit Suisse in order to partially finance the acquisition of its fleet. Some USD 45 million is still available under the credit facility, the Monaco-based company added.
"GoodBulk expects to use availability under this credit facility, along with cash available on its balance sheet, to fund the announced acquisitions. It is anticipated that when all vessels have been delivered the company will have drawn down USD 65 million of the USD 110 million available under the company's two credit facilities," the shipowner further noted.
For the six-months ended June 30, 2017, the company reported revenues and other income of USD 6.3 million, and net income of USD 0.1 million.
Supported by an improvement in the dry bulk shipping market, Hong Kong-based Jinhui Shipping and Transportation managed to cut its net loss in the first half of 2017.
The company’s net loss for the first half of 2017 shrunk to USD 8.7 million, against a net loss of USD 39.1 million seen a year earlier.
Revenue for the first half of 2017 increased 37% to USD 34.3 million, comparing to USD 25 million reported in the same period in 2016.
During the first half of the year the company entered into five memorandums of agreement to dispose of four Supramaxes and one Handysize at a total consideration of USD 63 million. By using the net sale proceeds arisen from the disposals for the repayment of the vessel mortgage loans, the group’s overall indebtness had been reduced by around USD 52.3 million.
The company’s net loss for the three-month period ended June 30, 2017 stood at USD 784 thousand, compared to a net loss of USD 20.6 million reported in the corresponding period in 2016.
Revenue for the second quarter of 2017 increased 26% to USD 18.9 million from USD 15 million seen in the same quarter a year earlier.
Dry bulk shipping market has been improving since February 2017 on the back of rising dry seaborne trade volumes which were stimulated by both increasing agriculture products and coal trading activities. Despite the softening of freight rates in May and June 2017, the average of Baltic Dry Index of the second quarter of 2017 was 1,006 points, compared to 610 points in the same quarter in 2016.
As of the end of August 2017, the group had twenty three owned vessels which included 2 modern Post- Panamaxes and 21 modern grabs fitted Supramaxes.
Norway-based bulker owner Songa Bulk is continuing with ship acquisitions as it has entered into an agreement to buy another Kamsarmax.
The 81,918 dwt vessel was built at Tsuneishi shipyard in Japan in 2014.
As informed, the bulker will be delivered in September 2017.
The company intends to establish a wholly owned subsidiary to take delivery of the vessel.
The only vessel in Songa Bulk’s fleet that fits the description is the 2014-built Goddess Santosh Devi, according to data provided by VesselsValue. The purchase deal, worth USD 22.75 million, was inked with Japanese United Ocean Group.
Earlier this month, Songa Bulk completed a tap issue of USD 45 million in its Senior Secured Callable Bond Issue, the net proceeds of which have been earmarked for the financing of additional bulker acquisitions. The total nominal amount outstanding in the bond following the tap issue will be USD 120 million.
The newest purchase brings Songa Bulk’s total fleet to 14 vessels, with a total of USD 259.2 million invested so far. The vessels include two Capesizes, nine Kamsarmaxes, one Ultramax and two Supramaxes.
Olso-listed bulker owner Songa Bulk ASA has entered into an agreement to acquire a Kamsarmax bulk carrier built in 2011 at Sanoyas in Japan.
The 83, 494-DWT vessel will be delivered during the fourth quarter of 2017, the company said.
The shipowner plans to establish a wholly owned subsidiary to take delivery of the vessel.
The latest purchase brings Songa Bulk’s total fleet to 13 vessels, which have cost USD 236.4 million so far.
These include 2 Capesizes, 8 Kamsarmaxes and 3 Supramaxes.
Earlier this week, Songa completed a tap issue of USD 45 million in its Senior Secured Callable Bond Issue, the net proceeds of which have been earmarked for the financing of additional bulker acquisitions.
The total nominal amount outstanding in the bond following the tap issue will be USD 120 million.
“The additional USD 45 million from the tap issue will let us continue to grow the fleet in line with our strategy. We still find the risk reward ratio attractive in the dry bulk space and we expect to add additional vessels to our fleet shortly,” Arne Blystad, Chairman of the Board of Directors of Songa, said commenting on the tap issue.
One of 2016's busiest bulk sellers has sold a vessel to one of the year's busier buyers. Empire Bulkers of Greece has paid US$8m for a panamax bulker controlled by Japan's Nissen Kaiun. The Imabari-built, 11-year-old 76,596dwt Red Jasmine was inspected by a number of owners before Empire won the rights to it.
Drybulk and container shipping operator Euroseas has recently entered into a memorandum of agreement to acquire 75,100dwt bulker carrier "Capetan Tassos" for a price of US$4.4m.
The Japanese-built vessel is anticipated to be delivered in January 2017.
Euroseas Chairman and CEO Aristides Pittas said that the company was very pleased to announce the acquisition of M/V Capetan Tassos as they believe that the segment is approaching a turning point after a long-time depression.