Precious Shipping’s Plan to Expand Fleet by 1 Million Deadweight Gains Financing

The 2012-built 33k dwt bulk carrier Benjamas Naree came at a contract price of USD $28.53 million from ABG Shipyard in India, image: PSL

Thai dry bulk shipping firm Precious Shipping (PSL) announced today the executing of a USD 81.50 million Term Loan Facility with Export-Import Bank of Thailand to finance up to 80% of the contract price of new dry bulk carriers.  The rate is 6 months LIBOR plus margin.

This block of financing is only the tip of the iceberg needed to fund Precious Shipping’s $789 million newbuild program for 29 new bulk carriers.  In the next two years, the company will add approximately 1 million deadweight tons to their fleet capacity and increase the average tonnage of their ships from 33,895 dwt to 47,885 dwt.

Their  includes:

(3) Cement Carriers (20K DWT) at Shanhaiguan Shipyard, China with expected delivery during 2014
(2) Bulk Carriers (38.5 K) at Shanhaiguan Shipyard, China with expected delivery during 2015
(14) Bulk Carriers (64 K) at Sainty Marine Corporation Ltd., China with expected delivery during 2014-16
(10) Bulk Carriers ( 4/38.6 K & 6/63.3K) at Taizhou Sanfu, China with expected delivery during 2015-16

In a presentation on 31 March 2014, PSL notes their plan for the next two years is to “expand fleet, fix ships on long term charters, and sell older ships at a profit.”

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