Greece-based Star Bulk Carriers has signed an agreement with entities controlled by Delphin Shipping to buy 11 dry bulk vessels for $139.5m.
Under the deal, Star Bulk Carriers will pay $80m in cash and 4.503 million common shares worth around $59.5m.
Star Bulk Carriers will fund the cash part of the deal through proceeds of a new seven-year capital lease of up to $93.6m with China Merchants Bank Leasing and an additional tranche of $15m for financing of Scrubbers, providing almost $9m of extra liquidity for Star Bulk.
Scheduled to be completed in June, the acquisition of vessels is subject to the execution of definitive finance agreements along with relevant customary closing conditions.
Following completion of the transaction, the technical management of 11 vessels will continue with an entity affiliated with Technomar while commercial management will be assumed by Star Bulk.
The 11 ships are Apus (2014), Aquila (2012), Cepheus (2012), Columba (2012), D. Centaurus (2012), Dorado (2013), Hercules (2012), Hydrus (2013), Leo (2013), Pegasus (2013), and Pyxis (2013).
All the acquired ships were built at Jiangsu Hantong shipyard in China.
Once the deal is closed, entities affiliated with Kelso are likely to own about 4.6% of the outstanding common shares of Star Bulk Carriers.
With the latest acquisition, Star Bulk will have a fleet of 120 vessels on a fully delivered basis, aggregate cargo-carrying capacity of approximately 13.1 million deadweight tonnes and vessels with an average age of 7.8 years.
In August last year, Star Bulk Carriers signed an en bloc definitive agreement with entities affiliated with E.R. Capital to acquire up to seven dry bulk vessels.