Boston, MA, 03/17/2014 – NewLead Holdings Ltd (NASDAQ:NEWL), an international, vertically integrated shipping and commodity company, announced having executed definitive agreements for the purchase of two eco type 31,800 dwt, Handysize bulk carriers which were built in 2012 for a total attainment price of $37 million.
Delivery By Mid-2014
NewLead Holdings Ltd (NASDAQ:NEWL) expects to get the delivery of the two eco type vessels by the end of June and July this year. It already own two dry bulk vessels and in addition has agreements to acquire three more eco type ecotype Handysize dry bulk vessels, one of which is a newbuilding. Hence by themed of this year, it will own as many as five dry bulk vessels of which three are Handysize and two are Panamax vessels. Aprt from the fleet of dry bulk carriers and double hall product tankers, it also owns a wash plant and a mine in Kentucky, USA.
Financing The Acquisition
Headquartered in Piraeus, Greece, the company seeks to finance the purchase of the two new vessels through a combination of proceeds obtained from its latest preferred shared issuance and the 75% debt financing. It had already paid a deposit of $1.85 million on Tuesday, March 11. The rest of the acquisition price, which amounts to $7.4 million, not subject to the debt financing, will be paid in installments upon acquisition of the two vessels, NewLead reported.
NewLead Holdings Ltd (NASDAQ:NEWL)’s President and chief Executive Officer, Michael Zolotas said that the company is looking forward to the acquisition of two new eco type bulk Handysize vessels at a competitive rate with an upside in market price. He said that the vessels will have a 23 year employment lifetime and an unlimited trading flexibility. HE said that the company projects an EBITDA of $4 million and an OPEX of $1.73 million per year per vessel in accordance with the current market levels.