Seanergy Signs Agreement For Contribution Of Four Capesize Vessels As Equity

Posted by Joseph R. Fonseca
Wednesday, April 30, 2014
Logo

 

Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP) announced today that the Company has entered into an agreement with entities affiliated with certain members of the Restis family (the “Sellers” or “Major Shareholders”) for the contribution of four Capesize vessels as equity, in exchange for newly issued shares of the Company’s common stock.
 
Pursuant to the agreement, certain of the Company’s Major Shareholders will contribute to the Company four Capesize vessels with a current market value appraised at approximately $178 million and estimated net asset value of approximately $86 million.
 
The transaction remains subject to certain closing conditions, including Sellers’ lenders’ approval and other standard legal documentation and is expected to be completed by June 30, 2014. The Company’s Board of Directors will obtain a fairness opinion from a reputable financial firm for this transaction.
 
Following the completion of the transaction, the Company will have a modern fleet of four Capesize dry bulk carriers with a combined cargo-carrying capacity of approximately 682,723 dwt and an average fleet age of about 7.5 years. Upon delivery, the vessels are expected to be employed in the spot market or under index-linked charter agreements and consequently the Company will start earning revenue immediately upon completion of the transaction. As a result, indicatively, based on current consensus estimates by research analysts for 2014 and 2015 charter rates, these vessels are expected to generate aggregate revenues of approximately $36 million and aggregate EBITDA of approximately $25 million during the 12-month period following the closing of the transaction.

The Company will evaluate future employment options based on prevailing spot and period rates.
 
As of March 31, 2014, the Company’s shareholders’ equity was approximately $2.6 million. The exact amount of the increase in the Company’s shareholders’ equity as a result of this transaction will be determined on the closing date of the transaction.
 
Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer, stated: “This transaction represents a new era for Seanergy as we rebuild our fleet starting with four modern Capesize vessels that will immediately generate cash flows. Moreover, this contribution represents a strong vote of confidence in our business plan, which we have successfully implemented so far. Our objective is to grow the Company through accretive transactions and deliver substantial shareholder returns for the long term.”

 

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

Contracts

Seasat Wins Contract from Maersk Supply Services

Seasat A/S, the Danish communications services provider, specialized in delivering reliable broadband, television and voice services for the maritime market announces

L-3 MSI to Equip Third Quantum Class Ship

L-3 Marine Systems International (L-3 MSI) announced today that it has been awarded a contract to provide a range of navigation, lighting and communication systems

TORM Contracts Albwardy for Diving Services

Danish product tanker carrier TORM A/S and UAE-based Albwardy Marine Engineering (AME), an Albwardy-Damen JV, have signed a Service Level Agreement for diving services in the UAE region.

Finance

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Scorpio Bulkers Upsizes Public Offering

Scorpio Bulkers Inc. announced today that it has further upsized and priced its previously announced offering of senior unsecured notes due 2019 in a registered public offering.

Mideast Crude Tanker Rates Near 3-month Low

Crude oil tanker earnings on the major Middle East route fell to their lowest in nearly three months as a slowdown in business in recent days battered rate sentiment.

Marine Materials

MN 100: Thordon Bearings Inc.

3225 Mainway Burlington, State ON Canada L9C5J8 Tel: (905) 335-1440   Email: craigc@thordonbearings.com  Website: www.thordonbearings.com President

MN 100: Total Lubmarine

Le Diamant B – 16, rue de la République 92922 Paris-La-Défense Cedex, France E-mail: rm.total-lubmarine@total.com Web: www.lubmarine.com The Company: Total

KO-LINK Towing Ring Now Available from Lankhorst Ropes

The KO-LINK towing ring, developed by international maritime service provider KOTUG International BV, is now available exclusively from maritime ropes supplier

News

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Seasat Wins Contract from Maersk Supply Services

Seasat A/S, the Danish communications services provider, specialized in delivering reliable broadband, television and voice services for the maritime market announces

Leaky Equipment, Not Fracking, Behind Tainted US Water -Study

The contamination of water supplies near U.S. shale gas fields appears to be the result of leaky cement wells and casings and not the controversial production technique of hydraulic fracturing,

Vessels

Ingalls Delivers NSC Hamilton to USCG

Huntington Ingalls Industries' (HII) Ingalls Shipbuilding division delivered the National Security Cutter Hamilton (WMSL 753) to the U.S. Coast Guard today. The

L-3 MSI to Equip Third Quantum Class Ship

L-3 Marine Systems International (L-3 MSI) announced today that it has been awarded a contract to provide a range of navigation, lighting and communication systems

Smith Brothers to Christen Newbuild Tug

On October 10, 2014, Kenneth Smith, 99, the last of the original Smith Brothers, will christen the tug Captain Kenneth. The vessel was designed by the late Oliver

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1662 sec (6 req/sec)