Star Bulk Announces the Acquisition of Two Modern Post-Panamax Vessels With
Employment Contracts and Agreement for a New Secured
ATHENS, GREECE -- (Marketwired) -- 01/29/14 -- Star Bulk Carriers
Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), a global
shipping company focusing on the transportation of dry bulk cargoes,
today announced that it has entered into binding agreements to
acquire two modern Post-Panamax bulk carriers, the M/V "GL Qushan"
and the M/V "GL Daishan," from an unaffiliated third party for a
total consideration of $60.0 million.
Each of the vessels has a carrying capacity of approximately 98,000
deadweight tons and is expected to be capable of transiting the
Panama Canal upon its scheduled expansion. The vessels were delivered
to their present owners by Tsuneisi Group Shipbuilding Inc. in
October and August of 2011, respectively.
The vessels, to be renamed "Star Vega" and "Star Sirius," are
expected to be delivered to Star Bulk by the middle of February 2014
and early March of 2014, respectively. Upon their delivery, the Star
Vega and the Star Sirius are scheduled to be chartered back to the
seller for a period between 30 months to 34 months and between 27
months to 31 months, respectively, each at a gross daily rate of
$15,000 less an address commission of 1.25% on gross revenues. The
vessels are expected to generate approximately $13.4 and $12.1
million respectively in charter revenue over the minimum contract
Star Bulk also announced today that it had executed a binding term
sheet with Deutsche Bank AG for a new 7-year senior secured credit
facility of up to $39.0 million that will be used to partially
finance the acquisition of the Star Sirius and the Star Vega. Entry
into this senior secured credit facility is subject to execution of
customary definitive documentation for financing transactions of this
Upon the completion of the acquisition of the Star Sirius and the
Star Vega, Star Bulk will own 17 dry bulk vessels, consisting of five
Capesize, two Post-Panamax, two Ultramax and eight Supramax vessels
with average age of approximately 8.8 years.
In addition, Star Bulk has contracts for the construction of an
additional nine vessels at high quality shipyards in Japan and China,
g three Newcastlemax, two Capesize and four Ultramax vessels
with fuel-efficient specifications with expected deliveries in 2015
and early 2016.
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, Greece.
Its common stock trades on the Nasdaq Global Select Market under the
symbol "SBLK." Following the delivery of the two newly acquired
vessels, Star Bulk will own a fleet of seventeen dry bulk carriers
consisting of five Capesize, two Post Panamax, two Ultramax and eight
Supramax dry bulk vessels with a combined cargo carrying capacity of
approximately 1,609,519 deadweight tons (dwt) and an average age of
approximately 8.8 years. In addition, Star Bulk provides vessel
management services to ten third-party dry bulk vessels, including
five Capesize, two Panamax and three Supramax vessels. Star Bulk has
also entered into agreements for the construction of nine fuel
efficient dry bulk vessels, including three Newcastlemax vessels, two
Capesize vessels and four Ultramax vessels, with a combined cargo
carrying capacity of 1,227,000 deadweight tons. All of the
newbuilding vessels are expected to be delivered during 2015 and
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
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
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 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
the Company's operating expenses, including bunker prices, drydocking
and insurance costs, the market for the Company's vessels,
availability of financing and refinancing, 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. 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.
Star Bulk Carriers Corp.
c/o Star Bulk Management Inc.
40 Ag. Konstantinou Av.
Investor Relations / Financial Media:
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
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