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Monday, September 27, 2021

Golden Ocean to Acquire 18 Modern Dry Bulk Vessels

Maritime Activity Reports, Inc.

February 18, 2021

For illustration only - Credit: mrnai/AdobeStock

For illustration only - Credit: mrnai/AdobeStock

Dry bulk shipping company Golden Ocean Group has entered into a Heads of Agreement to acquire 18 modern scrubbers fitted dry bulk vessels from affiliates of John Fredriksen's Hemen Holding, which is Golden Ocean's largest shareholder, for $752 million.

Of the 18 vessels, ten are Newcastlemaxes built 2019-21, and eight are Kamsarmaxes built 2020-21 

"The transaction will add significant scale to Golden Ocean’s operating fleet, contribute to reducing cash breakeven levels and is in line with the company's fleet renewal strategy," Golden Ocean said Wednesday.

Affiliates of Hemen have agreed to provide a loan facility of USD 414 million, corresponding to 55% of the purchase price, in order to give the company time and flexibility to arrange long-term financing for the vessels.

"The loan facility is contemplated to be refinanced on favorable terms in the international debt market after completion of the Transaction," Golden Ocean added.

In connection with the transaction, Golden Ocean said Thursday it was contemplating a private placement to raise gross proceeds of approximately USD 338 million through the issuance of new ordinary shares in the company.

"The net proceeds from the Private Placement will be used to finance the cash portion of the consideration in the Transaction, in addition to working capital and general corporate purposes," Golden Ocean said Wednesday adding that Hemen had pre-committed to subscribe for, and would be allocated, 50% of the Private Placement, equivalent to USD 169 million.

Later in the day, Golden Ocean said the private placement had been successfully placed, raising gross proceeds of the NOK equivalent of USD 338 million, corresponding to approximately NOK 2,873 million through the placing of 54,207,547 new shares at a subscription price of NOK 53.00 per Offer Share.

Golden Ocean, whose fleet consists of 78 vessels, with an aggregate capacity of approximately 10.8 million dwt, said the Private Placement was significantly oversubscribed. Hemen Holding Limited has been allocated 27,103,773 Offer Shares for approximately USD 169 million and will retain a 39.07% ownership in the company following the Private Placement.  

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