Baltic Trading buying bulk carriers

By Finance

Baltic Trading Limited has acquired 2 Handysize ships - 'Baltic Fox' and 'Baltic Hare'. The vessels are in the Clipper Logger Pool, a spot market-related Handysize pool operated by Clipper Bulk.

John C. Wobensmith, President and Chief Financial Officer announced:
"We are pleased to take delivery of the Baltic Fox and the Baltic Hare, as planned, and enter the vessels into a spot market-related vessel pool consistent with our fleet deployment strategy. The Baltic Fox and the Baltic Hare combine to expand our modern, high-quality fleet by approximately 10% on a tonnage basis while further strengthening our position in the global transportation of essential commodities and increasing our long-term earnings potential."

Baltic Trading Limited has arranged  a $22milliion credit agreement with DVB Bank SE. Under the terms of the 6-year facility, amounts taken will bear interest at LIBOR plus a margin of 3.35%. The credit facility is to be returned in 24 repayment installments of $375,000 each, the 1st has to be paid in December 2013, and a balloon payment of approximately $13 million payable concurrently with the last repayment installment. The Company used the entire proceeds from the new facility as well as proceeds from its May 2013 equity offering to fund the acquisition of the Baltic Fox and the Baltic Hare.

Mr. Wobensmith informed also:
"In support of our growth initiatives, management has taken active measures to increase Baltic Trading's financial flexibility by closing a new $22 million credit facility with a global lending institution and amending our 2010 credit facility under favorable terms to allow for the incurrence of additional debt going forward. We appreciate the support that we have received from our expanded lending group and remain focused on preserving a sound capital structure as we pursue additional opportunities to take advantage of an attractive acquisition environment."

Baltic Trading Limited - company information
Baltic Trading Limited is a drybulk company with interest in the charter market. The Company transports iron ore, coal, grain, steel products and other drybulk cargoes around the world. Baltic Trading is owner of 11 drybulk ships, including 2 Capesize, 4 Supramax and 5 Handysize ships capable to transport of approximately 736,000 dwt.