Baltic Trading Acquires Two Capesize Vessels

marinelink.com
Monday, December 30, 2013

Takes Delivery of the Baltic Lion; Vessel to Commence Spot Market-Related Time Charter.

Baltic Trading Limited announced today that it has taken delivery of the Baltic Lion, a 2012-built Capesize vessel. The Baltic Lion is the second of two Capesize vessels to be delivered to the Company under Baltic Trading's agreements previously announced on November 5, 2013.

John C. Wobensmith, President and Chief Financial Officer, commented, "We are pleased to take delivery of the Baltic Lion following the successful delivery of its sister ship, the Baltic Tiger, earlier this quarter. With these vessels, combined with the delivery of two Handysize vessels in September, we have completed as planned two of the three acquisitions announced by Baltic Trading during 2013. 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. By taking advantage of an attractive acquisition environment, we have strengthened our ability to capitalize on the positive long-term fundamentals in the drybulk industry and enhanced our future earnings and dividend potential."

The Baltic Lion delivered to its charterer, Cargill International S.A., on December 29, 2013 to commence a spot market-related time charter for 10.5 to 13.5 months. The rate for the spot market-related time charter, which is subject to the completion of definitive documentation, is based on 102.75% of the average of the daily rates of the Baltic Capesize Index (BCI) published by the Baltic Exchange, as reflected in daily reports. Hire will be paid every 15 days in arrears, net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. Baltic Trading will not be responsible for voyage expenses, including fuel.

The Company used proceeds of approximately $22.6 million from its $44 million credit facility in addition to cash on hand to pay the remaining balance of approximately $42.0 million for the Baltic Lion.  The Company also used borrowings of approximately $21.4 million under the $44 million credit facility to refinance a portion of the purchase price of the Baltic Tiger, which delivered to the Company on November 26, 2013.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Zamakona Delivers Second Vessel to Jadran

On October 18, Zamakona Yards celebrated in Getxo, Bizkaia the delivery of tuna freezer vessel Ljubica to the owner group Jadran based in Ecuador and Panamá. The

INTERTANKO Welcomes IMO Bunker Decision

The International Maritime Organization (IMO) has agreed to consider introducing measures to improve controls of bunkers delivered to ships. After six submissions to the IMO over four years,

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Finance

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Pentair Reports 3Q 2014 Sales of $1.8 bi

Pentair plc today announced third quarter 2014 sales of $1.8 billion. Sales were up 3 percent compared to sales for the same period last year. Third quarter 2014

FortisBC Starts Expansion of Tilbury LNG Facility

FortisBC – a subsidiary of Fortis Inc. has officially started construction of its $400 million Tilbury LNG Facility expansion project today. The company is adding 1.

News

Zamakona Delivers Second Vessel to Jadran

On October 18, Zamakona Yards celebrated in Getxo, Bizkaia the delivery of tuna freezer vessel Ljubica to the owner group Jadran based in Ecuador and Panamá. The

INTERTANKO Welcomes IMO Bunker Decision

The International Maritime Organization (IMO) has agreed to consider introducing measures to improve controls of bunkers delivered to ships. After six submissions to the IMO over four years,

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1564 sec (6 req/sec)