Baltic Trading Limited Takes Delivery of Initial Drybulk Vessel
Baltic Trading Limited, a drybulk company focused on the spot market, announced today that it has taken delivery of the Baltic Leopard, a 2009-built Supramax vessel. The Baltic Leopard is the first vessel to be delivered to the Company under agreements signed in February 2010 to acquire four 2009-built Supramax drybulk vessels from an unaffiliated third party as well as two Capesize newbuildings from another unaffiliated third party.
The Company also announced it has reached agreements to enter into spot market-related time charters for the Baltic Leopard and the Baltic Panther, both 2009-built Supramax vessels, with Olderndorff GMBH and Co. KG. Lubeck for approximately 11 to 13.5 months per vessel. The rate for both of the spot market-related time charters will be based on 95% of the average of the daily rates of the Baltic Supramax Index (BSI), an index published by The Baltic Exchange reflecting the average freight rate for six major Supramax time charter routes, as reflected in daily published reports. Hire will be paid every 15 days in arrears net of a 5% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. Baltic Trading will not be responsible for voyage expenses, including fuel.
The Baltic Leopard is expected to be delivered to its charterer on or about April 9, 2010. The spot market-related time charter for the Baltic Panther will commence upon delivery of the vessel, which is expected during the second half of April 2010. Both agreements are subject to the completion of definitive documentation.
John C. Wobensmith, President and Chief Financial Officer, commented, "We are pleased to take delivery of the first of six drybulk vessels we have agreed to purchase and secure the Baltic Leopard on a spot market-related time charter per our strategy. Building on our success, we expect to utilize proceeds from our Company's initial public offering and $75 million contribution from Genco Shipping & Trading Limited to take delivery of four additional drybulk vessels in the second quarter of 2010 as well as one Capesize vessel in October of 2010. Going forward, we intend to take advantage of additional opportunities to expand our modern high-quality fleet in a disciplined manner that meets our strict return criteria while maintaining a strong balance sheet with little to no debt leverage. In further differentiating Baltic Trading, we intend to distribute a substantial portion of cash flows through quarterly dividends for the benefit of our shareholders."
The following table reflects the current employment of Baltic Trading's current fleet as well as the employment or other status of vessels expected to join Baltic Trading's fleet.