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Star Bulk to acquire 11 dry bulk vessels from Delphin Shipping

Published by , Assistant Editor
Dry Bulk,

Star Bulk Carriers Corp. (Star Bulk), a global shipping company focusing on the transportation of dry bulk cargoes announced today that it has entered into an en bloc definitive agreement with entities controlled by Delphin Shipping LLC (Delphin or sellers), an entity affiliated with Kelso & Company (Kelso), pursuant to which the Company will acquire 11 operating dry bulk vessels for an aggregate purchase price of US$139.5 million (purchase price), payable in the form of a) US$80.0 million in cash and b) 4.503 million common shares of Star Bulk (the consideration shares), (the vessel acquisition). The company has secured exhaust gas cleaning systems (EGCS or scrubbers) 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 US$93.6 million with China Merchants Bank Leasing, and an additional tranche of US$15.0 million for financing of scrubbers, thus offering approximately US$9.0 million of additional liquidity for Star Bulk.

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 2 cargo-carrying capacity of approximately 13.1 million DWT and vessels with an average age of 7.8 years.

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