Castor Maritime Inc., a global shipping company specialising in the ownership of dry bulk vessels, announced that pursuant to a memorandum of agreement dated 25 July, it completed (through one of its wholly-owned subsidiaries) the acquisition of its second vessel, namely the Magic Sun, a 2001 Korean-built panamax dry bulk carrier, from an unaffiliated seller, for a purchase price of US$6.7 million (the Magic Sun acquisition).
The Magic Sun acquisition was financed with cash on hand, and the proceeds from a US$5 million unsecured term loan agreement entered into between the company and an entity controlled by Petros Panagiotidis, Castor’s Chairman, Chief Executive Officer and Chief Financial Officer, which closed on 30 August. The US$5 million term loan facility bears an annual fixed interest rate of 6% and has a bullet repayment at maturity, which is 18 months following the drawdown date.
The Board of Directors of the company and the Special Committee consisting of disinterested and independent members of the board have approved the US$5 million term loan facility.
In connection with the Magic Sun acquisition, on 30 August 2019, the company, through one of its wholly-owned subsidiaries, entered into a new time charter agreement with Oldendorff Carriers GMBH & Co KG at a daily hire rate of US$12 000. The charter agreement has an expected term of minimum 8 months up to maximum 12 months and is expected to commence on or around 7 September 2019. With this new employment, the company’s gross revenue is expected to increase by US$2.9 million for the minimum scheduled period of the time charter and could reach approximately US$4.4 million should employment be extended to its maximum period.
Panagiotidis commented: “We are pleased to announce the delivery of our second vessel. Consistent with our growth-oriented strategy, in a short period of time, we have doubled the size of our fleet with the target of increasing annual cash flows and shareholder value.”
Read the article online at: https://www.drybulkmagazine.com/shipping/10092019/castor-maritime-reveals-bulker-delivery-and-new-time-charter-contract/