Star Bulk Agrees to Acquire 11 Dry Bulk Vessels From Delphin

StarBulk-Nasdaq

Star Bulk announced that it has entered into an en bloc definitive agreement with entities controlled by Delphin, an entity affiliated with Kelso, pursuant to which the company will acquire eleven operating dry bulk vessels for an aggregate purchase price of $139.5 million, payable in the form of a) $80.0 million in cash  and b) 4.503 million common shares of Star Bulk.

The Company has secured exhaust gas cleaning systems for all of the Vessels with attractive delivery dates.

The cash portion of the Purchase Price will be financed through proceeds of a new seven-year capital lease of up to $93.6 million with China Merchants Bank Leasing, and an additional tranche of $15.0 million for financing of Scrubbers, thus offering approx. $9.0 million of additional liquidity for Star Bulk.

Below are the details of the Vessels to be acquired from Delphin:

The Acquired Vessels:
Vessel YoB Yard DWT
Apus 2014 Jiangsu Hantong 63,100
Aquila 2012 Jiangsu Hantong 56,500
Cepheus 2012 Jiangsu Hantong 56,500
Columba 2012 Jiangsu Hantong 56,500
D. Centaurus 2012 Jiangsu Hantong 56,600
Dorado 2013 Jiangsu Hantong 56,500
Hercules 2012 Jiangsu Hantong 56,500
Hydrus 2013 Jiangsu Hantong 56,600
Leo 2013 Jiangsu Hantong 56,600
Pegasus 2013 Jiangsu Hantong 56,500
Pyxis 2013 Jiangsu Hantong 56,600
Total     628,500

The Vessel Acquisition, which is expected to be consummated in June 2019, remains subject to the execution of definitive finance agreements and customary closing conditions. The technical management of the 11 vessels will remain with an entity affiliated with Technomar, while commercial management will be taken over by Star Bulk.

As a result of the contemplated transaction, entities affiliated with Kelso are expected to own approximately 4.6% of the outstanding common shares of the Company. After giving effect to the Vessel Acquisition, Star Bulk will have a fleet of 120 vessels on a fully delivered basis, aggregate cargo-carrying capacity of approximately 13.1 million deadweight tons and vessels with an average age of 7.8 years.

 

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