Baltic Trading has purchased and taken delivery of a new capesize vessel, Baltic Lion.
The vessel is the second of two capesize vessels ordered by the company.
The first vessel was the Baltic Tiger, which was delivered in November 2013.
Baltic Trading president and chief financial officer John Wobensmith said they were pleased to take delivery of the Baltic Lion following the success of its sister ship.
The Baltic Lion was delivered to Cargill International in December 2013 to start the market-related time charter for 10.5 to 13.5 months.
The rate for time charter is based on 102.75% of the average of the daily rates of the Baltic Capesize Index (BCI) published by the Baltic Exchange.
Baltic Trading used cash and $22.6m from its $44m credit facility to pay the balance of approximately $42m for the Baltic Lion.
The company also borrowed around $21.4m to refinance a part of the purchase price of the Baltic Tiger.
Wobensmith said that these and the Handysize vessels received in September, mark the completion of two of Baltic Trading’s acquisitions announced last year.
"Upon the anticipated delivery of two Ultramax newbuildings in the second half of 2014, our six newly-acquired vessels will expand Baltic Trading’s modern, high-quality fleet by a total of approximately 82% on a tonnage basis. As we continue to execute our growth strategy, we have an option exercisable in January 2014 to acquire two additional Ultramax newbuildings during the second and third quarters of 2015," Wobensmith said.
"By taking advantage of an attractive acquisition environment, we have strengthened our ability to capitalise on the positive long-term fundamentals in the dry-bulk industry and enhanced our future earnings and dividend potential," he added.
Currently, Baltic Trading’s fleet consists of four Capesize, four Supramax and five Handysize vessels with an aggregate carrying capacity of around 1,095,000dwt.
Following the delivery of the two Ultramax vessels, the company will own 15 dry-bulk vessels, with a total carrying capacity of around 1,223,000dwt.