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Safe Bulkers to acquire post-Panamax class dry bulk vessel

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Dry Bulk,

Safe Bulkers, Inc. has entered into an agreement for the acquisition of a Japanese-built, dry-bulk, Post-Panamax class, 87 000 dwt, new-build vessel at an attractive price with a scheduled delivery set for 3Q22.

The vessel is designed to meet the latest requirements of Energy Efficiency Design Index related to Green House Gas, GHG emissions, ‘EEDI, Phase 3’. It will also comply with the latest NOx emissions regulation, NOx-Tier III.

In parallel, the company has entered into an agreement for a new term loan facility of up to 60% post-delivery financing of this acquisition, an increase of the commitment under the existing revolving credit facility from US$20 million to US$30 million and the extension of its maturity date, initially scheduled to expire in 2022, by up to two years under the same pre-existing financial covenants. The financing transaction was evaluated and approved by the Board of Directors of the company, excluding an independent member of the board of the company, who serves as the Chief Executive Officer of the financial institution that is the lender in the transaction.

Presently, the company’s liquidity stands at US$167.5 million including cash and cash equivalents, restricted cash and funds available under sale and lease back agreement, new term loan agreement, and the revolving credit facility. Its aggregate remaining CAPEX requirements for the acquisition of this new-build and a new-build contracted for in October 2020 are US$51.8 million.

Dr. Loukas Barmparis, President of the Safe Bulkers commented: “We continue to invest in technologically advanced vessels complying with the latest environmental regulations in an effort to renew our fleet. The company’s capital expenditure requirements for the purchase of this newbuild are being financed through the new financial agreements. Safe Bulkers maintains a strong financial position with liquidity exceeding US$167 million, that provides us with the required financial flexibility, and a previously announced at the market equity offering, that may be utilised at stock prices levels and at times that the company deems to be appropriate."

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Dry cargo shipping news Panamax news