Baltic Trading to acquire two Capesize vessels for $103m

6 November 2013 (Last Updated November 6th, 2013 18:30)

Baltic Trading, a Marshall Islands-based drybulk company, has signed a deal to purchase two 179,185dwt Capsize vessels Baltic Lion and Baltic Tiger for $103m.

Baltic Trading, a Marshall Islands-based drybulk company, has signed a deal to purchase two 179,185dwt Capsize vessels, Baltic Lion and Baltic Tiger, for $103m.

Built by Hyundai Heavy Industries in 2011 and 2012, both the vessels are expected to be delivered to Baltic Trading by the end of the fourth quarter of 2013.

Baltic Trading plans to finance the purchase in two parts; one from proceeds of its share offering that ended on 25 September 2013 and the other from commercial bank debt financing.

The company is currently negotiating with a global lending institution for commercial bank financing.

Following the closure of the transaction, which is subject to customary documentation and closing conditions, Baltic will own a fleet of 13 drybulk vessels, including four Capesize vessels, four Supramax vessels and five Handysize vessels.

The fleet of Baltic Trading will have a total carrying capacity of approximately 1,095,000dwt and an average age of approximately 3.6 years.

Baltic Trading president and chief financial officer John C Wobensmith said the agreements to acquire two modern Capesize vessels at a "compelling" valuation, highlights the ongoing execution of Baltic Trading’s growth strategy.

"With these agreements, combined with our recently completed acquisition of two Handysize vessels, Baltic Trading is positioned to expand its high-quality fleet by a total of approximately 63% on a deadweight tonnage basis.

"We plan to continue to implement our fleet deployment strategy by securing these vessels on spot market-related time charters prior to their delivery. In addition, management remains focused on preserving a sound capital structure and cost-effective operating platform as we continue to take advantage of an attractive acquisition environment," Wobensmith added.