Star Bulk Takes Delivery of Its First Post -- Panamax Bulk Carrier, Star Vega
ATHENS, GREECE -- (Marketwired) -- 02/14/14 -- 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 taken delivery of M/V Star Vega (the
"Vessel") a Post -- Panamax bulk carrier of approximately 98,000
deadweight tons carrying capacity.
The Vessel has commenced a time charter with the sellers of the
Vessel for a period between 30 months to 34 months, at a gross daily
hire rate of $15,000 minus a 1.25% address commission on gross
revenues. The Vessel is expected to generate approximately $13.4
million in charter revenue over the minimum contracted period.
The Star Vega is the first of the two modern Post -- Panamax bulk
carriers to be delivered to the Company, pursuant to the relevant
binding agreements announced on January 29, 2014. The second Post --
Panamax bulk carrier, M/V Star Sirius, is expected to be delivered to
the Company in early March of 2014.
Upon the completion of the acquisition of the M/V Star Sirius, Star
Bulk will own seventeen 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 entered into definitive contracts for the
construction of additionally nine vessels at high quality shipyards
in Japan and China, including three Newcastlemax, two Capesize and
four Ultramax vessels with fuel-efficient specifications with
expected deliveries in 2015 and early 2016.
The Company has financed the purchase of the Vessel using cash on
hand and expects to refinance part of its purchase price, as well as
part of the purchase price of the M/V Star Sirius, under the
previously announced 7- year senior secured credit facility of up to
$39.0 million with Deutsche Bank AG ("DB Facility"). The drawdown of
the DB facility is expected to take place in March 2014.
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 eleven third-party dry bulk vessels, including
five Capesize, one Post - Panamax, 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 2016.
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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