This is the second vessel acquired by the company since its listing on NASDAQ last February.
The Panamax acquisition was financed using a combination of cash on hand and the proceeds from a USD 7.5 million interest free unsecured bridge loan, which was provided to the company by an entity controlled by Petros Panagiotidis, Castor’s Chairman, Chief Executive Officer and Chief Financial Officer.
The bridge financing, maturing on December 31, 2019, allowed the company to purchase the vessel immediately while assessing financing options for its fleet. The company has received an offer letter from a first class bank for a 5-year term loan, which is expected to be entered into by the end of the year, subject to normal closing conditions, Castor explained.
“We believe that this acquisition will prove to be accretive to our profitability and increase shareholder value over time. We are committed to continue taking advantage of market opportunities for further growing our fleet,” Panagiotidis said.