Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes announced today that it has entered into a definitive agreement with entities affiliated with E.R. Capital Holding GmbH & Cie. KG (“E.R.” or “Sellers” ) 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
1 E.R. Bayonne Capesize Hyundai Heavy Ind. South Korea 2010 180,000
2 E.R. Borneo Capesize Hyundai Heavy Ind. South Korea 2010 180,000
3 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.
