Star Bulk Carriers Corp. has entered into a definitive agreement to acquire the Capesize bulk carrier , of 150,940 dwt, built in in 1991, for approximately $87.2 million. The acquisition will be financed through a combination of company cash and bank debt. The vessel is to be renamed Star Ypsilon and is scheduled to be delivered to Star Bulk within August/September 2008.
The vessel will enter into an approximately 34-month time charter to TMT as of the time of the vessel's delivery to Star Bulk at a net daily rate of $112,600 for the first 10 months, $93,300 for the following 12 months and $74,100 for last 12 months in replacement of the Star Iota which has been committed to be sold.
The vessel is being acquired from a company affiliated with Oceanbulk, which intervened to facilitate the transaction, at the same price it acquired the vessel from Dutch interests. No commissions are to be charged either on the sale or the chartering of Star Ypsilon.
Following this acquisition, Star Bulk's fleet will increase to thirteen vessels of approximately 1,184,835dwt. With the addition of the Star Ypsilon the contracted fleet operating days under time charter in 2008, 2009 and 2010 will be 100%, 84% and 63% respectively.