Star Bulk Secures Financing for Newbuilds

Photo: Star Bulk

Star Bulk Carriers Corp., the largest U.S. listed dry bulk company, said Friday it has secured up to $227.5 million in financing for seven newbuilds.

With this new round of financing, Star Bulk has secured financing for the 30 out of the 32 newbuilding vessels under construction. The company says it is currently on the final stages of negotiating the terms for the financing of its last two newbuilding vessels.

The financing was provided by DNB Bank, SEB Bank (SEB) and the Export-Import Bank of China (CEXIM).

The company on Friday also announced its unaudited financial and operating results for the fourth quarter and the year ended December 31, 2014.

Finally, Star Bulk announced today that it has entered into a binding agreement to sell for demolition the M/V Star Monika, a 71,500 dwt Panamax vessel, built in 1993, to an unaffiliated third party. Star Bulk expects to deliver the vessel to her buyers by end of March 2015.

Commenting on today’s announcements, Petros Pappas, Chief Executive Officer of Star Bulk, said: “This past year has been a transformational one for the Company, after the merger with Oceanbulk and the acquisition of 34 vessels from Excel Maritime, making Star Bulk the largest U.S. listed dry bulk company with a fleet of 98 vessels on a fully delivered basis.

Against a backdrop of weakening market conditions in the fourth quarter of 2014, Star Bulk reported full year revenues of $147.4 million and adjusted EBITDA of $43.6 million. For the fourth quarter, the Company reported revenues of $65.6 million and adjusted EBITDA of $16.6 million.”

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