Star Bulk Carriers Corp. (Star Bulk) (Nasdaq:SBLK), a global shipping company focusing on transportation of dry bulk cargoes, announced yesterday that it has entered into a definitive agreement with Oceanbulk Container Carriers LLC (“OCC”), an entity affiliated with Oaktree Capital Management L.P. and with family members of our CEO, Mr. Petros Pappas, (the “OCC Vessel Purchase Transaction”) pursuant to which the Company will acquire three Newcastlemax vessels for an aggregate of 3.39 million common shares of Star Bulk (the “OCC Consideration Shares”).
Under the terms of the agreement with OCC, the consideration is determined based on the average vessel valuations by independent vessel appraisers. The transaction has been approved by the disinterested members of the Board of Directors of the Company, based upon the recommendation of a transaction committee of disinterested directors established by the Board of Directors of the Company, which considered the OCC Vessel Purchase Transaction in coordination with the Company’s management team. The OCC Vessel Purchase Transaction, which is expected to be consummated in the second quarter of 2018, remains subject to customary closing conditions.
The three (3) vessels are being constructed at Shanghai Waigaoqiao Shipbuilding Co. (“SWS”), with expected delivery dates in first quarter of 2019. Under the terms of the OCC Vessel Purchase Transaction, the Company will issue to the OCC shareholders the “OCC Consideration Shares” which are subject to adjustments for cash, debt and capital expenditure on the closing date. CSSC (Hong Kong) Shipping Company Limited has agreed to provide $104.4m to finance the remaining $103.8m capital expenditure of the three vessels via a ten-year capital lease.
After giving effect to the OCC Vessel Purchase Transaction, Star Bulk will have a fleet of 108 vessels on a fully delivered basis, aggregate cargo-carrying capacity of approximately 12.26 million deadweight tons and vessels with an average age of 7.1 years.
Source: Star Bulk