Bulk Carriers, Baltic Trading, Have Confidence, Invest in New Ships
Baltic Trading Limited has ordered two 64,000 dwt Ultramax newbuildings for an aggregate purchase price of $56.0 million. The Company also has an option exercisable in January 2014 to acquire two additional Ultramax newbuildings under the same specifications and purchase price.
The four eco-design vessels will be built by Yangfan Group Co., Ltd. with the two committed vessels expected to be delivered to Baltic Trading (BALT) in the second half of 2014.
Upon completion of this acquisition (which is subject to the completion of customary documentation and closing conditions) excluding the two option vessels and combined with the recently announced acquisition of two Capesize vessels, Baltic Trading will own 15 drybulk vessels, consisting of four Capesize, two Ultramax, four Supramax and five Handysize vessels with a total carrying capacity of approximately 1,223,000 dwt and an average age of approximately 4.0 years after the delivery of the second committed vessel in Q4 2014.
Baltic Trading plans to finance part of the acquisition of the Ultramax newbuildings through commercial bank debt financing or other financing sources.
John C. Wobensmith, President and Chief Financial Officer, commented, "We are pleased to enter into our third acquisition in 2013 as management has once again capitalized on an attractive acquisition environment. Our year-to-date success in taking advantage of favorable asset prices has positioned Baltic Trading to significantly expand its modern high-quality fleet by approximately 82% on a tonnage basis and increase the Company's future earnings and dividend potential.