Star Bulk buys 2 modern Post-Panamax bulk carriers for $60m

By Finance

Star Bulk Carriers has agreed to purchase two Post-Panamax bulk carriers for $60m from Glocal Japan. The Greek shipping company will acquire the M/V GL Qushan and M/V GL Daishan in the end of February and early March 2014. The ships are designed to have capacity of around 98,000dwt. After the delivery of the newbuildings, Star Bulk Carriers will rename the ships to Star Vega and Star Sirius. The vessels will be chartered back to Glocal Japan for about 30 months.

The 2 Post-Panamax bulk carriers are planned to return the investment and to generate revenues for the charter period of about $26m. Star Bulk is taking the money for the purchase from its secured credit facility of up to $39m, secured from Deutsche Bank. The total number of the fleet of the company after this purchase will be: 17 dry bulk ships including 5 Capesize, 2 Post-Panamax, 2 Ultramax and 8 Supramax vessels with calculated average age under 9 years.

That is not the last purchase of Star Bulk Carriers, there are 9 ships being built at Japanese and Chinese shipyards, in that number are included 3 Newcastlemax, 2 Capesize and 4 Ultramax vessels, planned to enter service in 2015 and early 2016.

Background information:

Star Bulk is known to be a global shipping company working in seaborne transportation in the dry bulk sector. The fleet of the company is transporting iron ore, coal, grain and minor bulks which include bauxite, fertilizers and steel products.