Star Bulk to Acquire Pair of Tsuneishi-Built Bulk Carriers

GL XIUSHAN, image: Tsuneishi Holdings Corp

Star Bulk Carriers Corp. (Nasdaq: SBLK) announced today a signed agreement to acquire two Chinese-built Post-Panamax bulkers, the M/V “GL Qushan” and the M/V “GL Daishan,” for a total consideration of $60.0 million.

The 98,000 dwt vessels were both built at Tsuneishi Group (Zhoushan) Shipbuilding Inc. and were delivered to their undisclosed owners in October and August of 2011, respectively.

The vessels, to be renamed “Star Vega” and “Star Sirius”, are expected to be delivered to Star Bulk in February and March of this year and upon delivery, will be chartered back to the seller for a period of 30 – 34 months and between 27 – 31 months, respectively, each at a gross daily rate of $15,000 less an address commission of 1.25% on gross revenues.

In addition SBULK has executed a binding term sheet with Deutsche Bank AG for a new 7-year senior secured credit facility of up to $39.0 million that will be used to partially finance the acquisition of the Star Sirius and the Star Vega.

Upon the completion of the acquisition of the Star Sirius and the Star Vega, Star Bulk will own 17 dry bulk vessels, consisting of five Capesize, two Post-Panamax, two Ultramax and eight Supramax vessels with average age of approximately 8.8 years.

In addition, Star Bulk has contracts for the construction of an additional nine vessels at high quality shipyards in Japan and China, including three Newcastlemax, two Capesize and four Ultramax vessels with fuel-efficient specifications with expected deliveries in 2015 and early 2016.