Greece-based DryShips, a diversified owner of ocean going cargo vessels, entered into an agreement with an entity affiliated with the Company’s Chairman and CEO, George Economou, to acquire one 158,000 deadweight tons Suezmax tanker currently under construction in China.
The Company will finance the total gross purchase price of approximately $64.0 million using cash on hand and expects to take delivery of the vessel during May 2017.
The vessel will be time chartered back to the seller and employed from the time of delivery under a five year time charter plus optional periods in charterer's option at a base rate plus profit share.
The charterer will also be granted purchase options at the end of each firm period. The total expected backlog under the time charter, assuming an average spot market for Suezmaxes for the next 5 years of $25,000 per day is estimated to be approximately $43.1 million.
The transaction was approved by the audit committee of the Company's Board of Directors and the independent members of the Company's Board of Directors.
Meanwhile, DryShips reported a loss of $10.7 million in its first quarter. The company said it had a loss of 69 cents per share. It has posted revenue of $11.8 million in the period.