Star Bulk Agrees to Acquire Τhree Dry Bulk Vessels From E.R. Capital Holding
Star Bulk Carriers Corp. (Nasdaq: SBLK) announced a definitive agreement to acquire three capesize dry bulk vessels for $39 million in cash and 2.1 million shares. The vessels, E.R. Bayonne, E.R. Borneo, and E.R. Buenos Aires, are equipped with scrubbers and will be delivered by early February 2021, pending customary conditions. The transaction enhances Star Bulk's fleet, which consists of 119 vessels with a total capacity of 13.4 million dwt. Financing for the cash portion of the deal is being discussed with a financial institution.
- Acquisition of three capesize vessels enhances fleet size and capacity.
- Inclusion of scrubbers potentially improves environmental compliance and marketability.
- Transaction valued based on Net Asset Value (NAV) indicates a strategic purchase.
- Acquisition will require financing, potentially increasing debt levels.
- Market conditions for dry bulk shipping may present risks to revenue post-acquisition.
ATHENS, Greece, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq: SBLK) a global shipping company focusing on the transportation of dry bulk cargoes announced today that it has entered into a definitive agreement with entities affiliated with E.R. Capital Holding GmbH & Cie. KG (“E.R.” or “Sellers” ) pursuant to which the Company will acquire three (3) cape size dry bulk vessels , namely E.R. BAYONNE, E.R. BUENOS AIRES and E.R. BORNEO (the “Vessels”). The Vessels are retrofitted with exhaust gas cleaning systems (Scrubbers). Consideration for the acquisition is payable in the form of
The Company is in advanced discussions with a leading financial institution to finance the Cash Consideration through proceeds of a five-year term loan.
Below are the details of the Vessels to be acquired from E.R.:
| # | Name | Type | Yard | Country | Year Built | DWT |
| 1 | E.R. Bayonne | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| 2 | E.R. Borneo | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| 3 | E.R. Buenos Aires | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| Total | 540,000 |
The Vessels are expected to be delivered to the Company by early February 2021 and delivery remains subject to the execution of customary closing conditions.
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. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Oslo, New York, Cyprus and Singapore. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK”. Star Bulk operates a fleet of 119 vessels, with an aggregate capacity of 13.4 million dwt, consisting of 17 Newcastlemax, 22 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax and 17 Supramax vessels with carrying capacities between 52,425 dwt and 209,537 dwt.
Forward-Looking Statements
Matters discussed in this press release may constitute forward looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Company’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include general dry bulk shipping market conditions, including fluctuations in charterhire rates and vessel values; the strength of world economies; the stability of Europe and the Euro; fluctuations in interest rates and foreign exchange rates; changes in demand in the dry bulk shipping industry, including the market for our vessels; changes in our operating expenses, including bunker prices, dry docking and insurance costs; 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; the availability of financing and refinancing; our ability to meet requirements for additional capital and financing to complete our newbuilding program and grow our business; the impact of the level of our indebtedness and the restrictions in our debt agreements; vessel breakdowns and instances of off‐hire; risks associated with vessel construction; potential exposure or loss from investment in derivative instruments; potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management and our ability to complete acquisition transactions as planned. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward‐looking statements as a result of developments occurring after the date of this communication.
| Contacts | |
| Company: Simos Spyrou, Christos Begleris Co ‐ Chief Financial Officers Star Bulk Carriers Corp. c/o Star Bulk Management Inc. 40 Ag. Konstantinou Av. Maroussi 15124 Athens, Greece Email: info@starbulk.com www.starbulk.com | Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661‐7566 E‐mail: starbulk@capitallink.com www.capitallink.com |
FAQ
What is the total cost of the vessel acquisition by Star Bulk (SBLK)?
When will the acquired vessels E.R. Bayonne, E.R. Borneo, and E.R. Buenos Aires be delivered?
What financial strategy is Star Bulk using to finance the acquisition?
How does the acquisition of new vessels affect Star Bulk's fleet?
What type of vessels is Star Bulk acquiring in this deal?
