Baltic Trading to purchase two Ultramax vessels

14 November 2013 (Last Updated November 14th, 2013 18:30)

Baltic Trading, a Marshall Islands-based drybulk company, has signed a deal to purchase two 64,000dwt Ultramax newbuildings for a purchase price of $56m.

Baltic Trading, a Marshall Islands-based drybulk company, has signed a deal to purchase two 64,000dwt Ultramax newbuildings for a purchase price of $56m.

Built by Yangfan Group, both eco-design vessels are expected to be delivered to Baltic Trading in the second half of 2014.

Baltic Trading plans to fund the purchase through commercial bank debt financing or other arrangements.

The company also has plans to purchase two additional Ultramax newbuildings with the same specifications and purchase price in January 2014.

Following the closure of the transaction, Baltic will own a fleet of 15 drybulk vessels, including four Capesize vessels, two Ultramax vessels, four Supramax vessels and five Handysize vessels.

The fleet of Baltic Trading will have a total carrying capacity of approximately 1,223,000dwt and an average age of approximately four years.

Baltic Trading president and chief financial officer John C Wobensmith said the acquisition is the company’s third in 2013.

"We expect our latest transaction to contribute to Baltic Trading’s financial results in the near term as the two committed Ultramax newbuildings are scheduled to be delivered in the second half of 2014.

"In addition, these eco-design vessels further enhance our ability to provide superior customer service while strengthening Baltic Trading’s long-term commercial prospects," Wobensmith added.