Monaco-based GoodBulk has signed a deal to purchase seven to 13 Capesize dry bulk carriers from entities managed by CarVal Investors.
The vessels are expected to be delivered between the final quarter of this year and the first quarter of 2018.
The agreement will see CarVal Investors receive up to 10.5 million common GoodBulk shares for an initial consignment of seven vessels.
A total of $61m of existing borrowings are also expected to be refinanced under existing and new GoodBulk credit facilities.
GoodBulk will be able to take control of a fleet of 19 ships upon completion of the deal, including 16 Capesize, one Panamax and two Supramax vessels.
The company will also have an option to acquire up to six more Capesize vessels as part of the new arrangement.
GoodBulk chairman and CEO John Michael Radziwill said: “Not only does this transaction provide GoodBulk’s shareholders with increased Capesize exposure at what we believe to be an opportune time in a recovering market, it is expected to be immediately accretive to Net Asset Value per share, while reducing the company’s normalised break even cost by ship ownership day and reducing the average fleet age by approximately 1.4 years.
“Furthermore, with a significant share component priced at a premium to net asset value (NAV), this transaction underscores the value of the GoodBulk platform.”
The CarVal Investors are expected to be largest shareholder of GoodBulk following the finalisation of the deal.
CarVal Investors’ principal Gregory Belonogoff will join GoodBulk’s board of directors as a result of the purchase, and an independent director will be elected by the GoodBulk shareholders, thereby increasing the size of the company’s board by two members.