Pangaea Logistics Solutions Ltd. Adds Capacity with the Acquisition of Dry Bulk Vessel

Rhea-AI Summary

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) has acquired a 61,000 dwt dry bulk vessel, the Bulk Prudence, for $26.6 million in cash. This marks the 25th vessel in its owned fleet, with delivery expected in June 2023. The acquisition aligns with Pangaea's strategy to enhance its fleet with newer, high-quality vessels to optimize TCE rates and meet customer demands efficiently. Currently, Pangaea operates 50 vessels globally, a mix of owned and chartered. CEO Mark Filanowski emphasized that this addition supports their focus on providing consistent and efficient cargo transport services while adhering to disciplined capital allocation practices.

Positive

• Acquisition of Bulk Prudence strengthens fleet capacity with a 61,000 dwt vessel.
• Transaction value of $26.6 million indicates significant investment in fleet quality.
• Pangaea now owns 25 vessels, enhancing operational logistics.
• Immediate service entry post-delivery enhances freight capabilities.

Negative

• None.

Bulk Prudence will be the 25th owned vessel in Pangaea's global fleet
Pangaea expects to take delivery of the Bulk Prudence in the second quarter 2023

NEWPORT, R.I., April 26, 2023 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (Nasdaq: PANL), a global provider of comprehensive maritime logistics solutions, today announced the acquisition of a 61,000 dwt dry bulk vessel in the second-hand market for $26.6 million cash. 

Built in 2014, this vessel, to be re-named Bulk Prudence, is expected to be delivered to Pangaea in June 2023, representing the 25^th owned vessel in its fleet. The vessel is currently expected to enter into service immediately after delivery. Between its owned and short term chartered-in fleet, Pangaea currently operates 50 vessels in worldwide trades. 

"The acquisition of the Bulk Prudence demonstrates our continued strategic focus on maximizing TCE rates through a fleet of newer, high quality and well-maintained vessels, while providing our clients a consistent and efficient cargo transportation service," stated Mark Filanowski Pangaea's Chief Executive Officer. "This vessel fits well into our core fleet, having served as a part of our chartered-in fleet in prior years, effectively serving the cargo transit requirements of our customers. We remain an opportunistic acquiror of high-quality, newer vessels that meet the stringent requirements of the global trades in which we operate, consistent with our disciplined approach to capital allocation."

ABOUT PANGAEA LOGISTICS SOLUTIONS LTD.

Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise, except as required by law. Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov.

INVESTOR RELATIONS CONTACTS

Gianni Del Signore
Chief Financial Officer
401-846-7790
Investors@pangaeals.com

Noel Ryan or Stefan Neely
Vallum Advisors
PANL@val-adv.com

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SOURCE Pangaea Logistics Solutions Ltd.

FAQ

What is the significance of Pangaea's acquisition of the Bulk Prudence?

The acquisition enhances Pangaea's fleet capacity, supporting its strategic focus on providing efficient cargo transportation and optimizing TCE rates.

How much did Pangaea pay for the Bulk Prudence?

Pangaea acquired the Bulk Prudence for $26.6 million in cash.

When is the Bulk Prudence expected to be delivered?

The Bulk Prudence is expected to be delivered in June 2023.

How many vessels does Pangaea currently operate?

Pangaea operates a total of 50 vessels, including owned and chartered-in ships.

What strategies does Pangaea implement regarding fleet acquisition?

Pangaea focuses on acquiring high-quality and newer vessels while maintaining disciplined capital allocation to enhance its logistics services.