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.”