Goldenport Holdings Inc. has entered into an agreement with an unaffiliated third party, Bonitas Maritime Co. of Marshall Islands, to acquire a contract for a new-building geared Supramax bulk carrier vessel.
Goldenport Holdings Inc. the international shipping company that owns and operates a fleet of containers and dry-bulk vessels, announced yesterday that it has entered into an agreement with an unaffiliated third party, Bonitas Maritime Co. of Marshall Islands, to acquire a contract for a new-building geared Supramax bulk carrier vessel. The vessel which is being built at SPP Shipbuilding Co. Ltd. of Korea will have a carrying capacity of 59,000 DWT and is expected to be delivered in the last quarter of 2010.
The aggregate cost for the contract is US$31.8 million and the Company has the option to elect for additional items of equipment with a total value of $2 million to be added until the delivery date.
The initial deposit of US$ 4.76 million is funded by cash reserves. The remaining payments will be made to the yard based on the construction process schedule and will be financed by cash reserves and the draw-down of a loan facility already committed for this project for an amount of US$ 21.7 million.
Captain Paris Dragnis, Founder and Chief Executive Officer of Goldenport, commented:
"We continue our selective fleet expansion and renewal program taking advantage of attractive opportunities for high quality assets. Given the resilience of the demand for dry bulk services, the acquisition of this modern Supramax vessel enhances our operational flexibility and versatility, enabling us to better service our client requirements. Our conservative strategy and our sound financial condition allowed us to finance the project at favourable terms despite the limited availability in the global credit markets. "
New Loan Facility for Vessel Acquisitions
Goldenport Holdings Inc. also announced that it has arranged a new loan facility with a major Greek bank for a total amount of US$37 million.
Out of the total amount, US$15.1 million will be used to finance up to 80% of the acquisition cost of a dry bulk carrier, US$11.9 million will be used to refinance an existing credit facility and the remaining US$10 million will be used for working capital purposes. Two existing vessels that became debt free were used as collateral for the new facility.
This loan facility combined with an existing credit line for US$20 million, which was arranged during the third quarter of 2009, enables the Company to fund future dry bulk carrier acquisitions with an overall value of US$45.1 million.
Captain Paris Dragnis, Founder and Chief Executive Officer of Goldenport commented: "We are pleased to have secured a new loan facility with attractive terms with a major Greek bank. This new facility combined with an existing credit line and with our strong cash position gives us the flexibility to continue to seek strategic and accretive acquisitions that will create long-term value for the Company and its shareholders."