FreeSeas Shipbuilding Contracts for Handysize Drybulk Vessels

Wednesday, September 15, 2010

FreeSeas Inc., a transporter of dry bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, announced that it has entered into shipbuilding contracts for the construction of two Handysize dry bulk vessels of approximately 33,600 dwt each for an aggregate purchase price of approximately $48.8m. The vessels are scheduled for delivery in the second and third quarter of 2012.

The company has secured, subject to customary legal documentation, commitments for pre-delivery and post-delivery debt financing up to an amount of $32.4m from a leading international bank. The Company intends to use its balance sheet to pay the remainder of the purchase price.

Ion Varouxakis, Chairman and CEO of FreeSeas, stated, "Over the past year, FreeSeas has focused its efforts on generating cash flowand improving its financial position in preparation for an expansion of our fleet. We are excited to announce these orders, which, upon delivery of the vessels, will continue our strategic focus on renewing our fleet and expanding its carrying capacity, considerably lowering its average age, and at the same time decreasing its cash break-even. The favorable financing terms we have negotiated will allow us to achieve all those objectives without diluting our shareholders or undertaking unsustainable financial obligations. We have placed the orders with attractive payment terms at a first-class Chinese shipyard, reputed for delivering quality vessels on schedule. Using our extensive experience in the Handysize sector, we have negotiated high-specification standards vessels with highly optimized commercial characteristics. We continue steadfast in our belief in the fundamentals of the Handysize sector, including what we see to be growing demand and balanced fleet growth."


Shipbuilding

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0737 sec (14 req/sec)