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."

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

KR Overhauls Hull Structure Software

IACS member classification society the Korean Register (KR) informs it has overhauled its SeaTrust-HullScan software package, a ship design support solution that analyzes and appraises a vessel’s.

Wärtsilä Propulsion for New Fishing Vessel

A new fishing vessel being built by Simek AS in Norway on behalf of the U.K. operator Antares (Whalsay) Fishing Company Ltd, will feature an integrated Wärtsilä

Dry Bulk Market Crisis: Opportunity or Threat?

The shipping industry is experiencing the biggest dry bulk market recession since the 1980s, as uncertain global economic outlook and increased imbalance between

 
 
Maritime Standards Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators 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: 0.1089 sec (9 req/sec)