Star Bulk Carriers Corp. (Star Bulk) (Nasdaq: SBLK) a global shipping company focusing on the transportation of dry bulk cargoes announced last Thursday (Dec 17) that it has entered into a definitive agreement with entities affiliated with E.R. Capital Holding GmbH & Cie. KG (“E.R.”) pursuant to which the Company will acquire three (3) cape size dry bulk vessels , namely E.R. BAYONNE, E.R. BUENOS AIRES and E.R. BORNEO (the “Vessels”).
The Vessels are retrofitted with exhaust gas cleaning systems (Scrubbers). Consideration for the acquisition is payable in the form of $39.0 million in cash (“Cash Consideration”) and 2,100,000 common shares of Star Bulk (“Share Consideration”). The transaction was negotiated by the Company on the basis of NAV.
The Company is in advanced discussions with a leading financial institution to finance the Cash Consideration through proceeds of a five-year term loan. Below are the details of the Vessels to be acquired from E.R.:
| Name | Type | Yard | Country | Year Built | DWT |
| E.R. Bayonne | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| E.R. Borneo | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| E.R. Buenos Aires | Capesize | Hyundai Heavy Ind. | South Korea | 2010 | 180,000 |
| Total | 540,000 |
The Vessels are expected to be delivered to the Company by early February 2021 and delivery remains subject to the execution of customary closing conditions.