GoodBulk Looking to Buy Up to 13 Capesizes

Image Courtesy: GreatBulk

Owner and operator of dry bulkers GoodBulk Ltd has entered into an agreement to acquire 7 to 13 Capesize dry bulk carriers from entities managed by CarVal Investors.

Funds managed by CarVal Investors will receive for the initial 7 vessels up to 10.5 million common shares in GoodBulk, with USD 61 million of existing borrowings expected to be refinanced under current and new GoodBulk credit facilities.

Upon completion of the base transaction of 7 Capesize vessels, GoodBulk will control a fleet of 19 vessels with an average age of 9 years, consisting of 16 Capesize, 1 Panamax, and 2 Supramax vessels.

Delivery of the vessels is expected to occur during the fourth quarter of 2017 and the first quarter of 2018.

GoodBulk will have the option to acquire up to an additional 6 Capesize vessels.

“We are excited to partner with CarVal Investors in this transaction as we continue to execute upon the company’s strategy of building an industry leading platform for investment in dry bulk vessels,” John Michael Radziwill, Chairman and CEO, said.

The transaction provides GoodBulk’s shareholders with increased Capesize exposure at “an opportune time in a recovering market,” the company said, adding that the purchase is expected to be immediately accretive to Net Asset Value per share while reducing GoodBulk’s normalized break even cost by ship ownership day and reducing the average fleet age by approximately 1.4 years.

“Furthermore, with a significant share component priced at a premium to NAV this transaction underscores the value of the GoodBulk platform,” Radziwill added.

The company’s leverage ratio of net debt to gross asset value is expected to remain below 30%.

Following completion of the transaction, funds managed by CarVal Investors will be GoodBulk’s largest shareholder.

“CarVal’s decision to partner with the company in this transaction further validates GoodBulk’s market positioning and ability to develop into a landmark dry bulk shipping platform,” Milos Brajovic, Partner of Lantern Capital Partners, said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >