Euroseas confirms demolitions, delivery delays and refinancing
NASDAQ-listed Euroseas has sold two of its vessels for demolition, says it has delayed delivery of its remaining bulker newbuildings and has refinanced almost half of its existing fleet.
The boxship Despina P (1,932 teu, built in South Korea in 1990) was reportedly beached in Chittagong, Bangladesh on December 29. Brokers reported in early December the 8,760-ldt vessel had been sold for $310 per ldt or around $2.72m altogether.
Brokers have reported the 9,829-ldt panamax bulk carrier Aristidis NP (69,268 dwt, built in Japan in 1993) was sold to Indian buyers at a price of $289 per ldt or around $2.84m in total. Delivery is expected on January 15, Euroseas said today.
The 23-year-old boxship Marinos (1,599 teu, built 1993) was sold for demolition in late November 2015.
Meanwhile, the Athens-based shipowner says it has delayed delivery of its three remaining bulk carrier newbuildings, all of which are under construction in China.
Two ultramaxes will be delivered respectively in April and July, each five months later than originally scheduled. The remaining kamsarmax will be delayed by 15 months from its original delivery date, and will now hit the water between January and March 2018.
Another kamsarmax newbuilding, Xenia (82,300 dwt), is due to be delivered from China’s Jiangsu New Yangzijiang shipyard around February 25 this year, Euroseas said.
On delivery, Xenia will commence a four-year timecharter to an unnamed charterer for $14,100 per day. The contract includes the option to extend the period by a further year at a rate of $14,350 per day, Euroseas said.
The shipowner says it has signed a binding termsheet to finance 69% of Xenia‘s fair market value, which will be paid using its existing funds, and has already paid 30% of the contracted price.
A new binding term sheet loan for an undisclosed amount has also been secured to refinance existing debt on Euroseas’ containerships Ninos, Kuo Hsiung, Captain Costas, Manolis P and the bulk carrier Monica P. The loan has a three-year tenor, after which a balloon payment of 65% of the loan is due, and has been secured against the owner’s debt-free containership Aggeliki P.
“We are very pleased to have concluded agreements to finance our first kamsarmax newbuilding and to refinance existing debt on six of our elder vessels,” Aristides Pittas (pictured), chairman and CEO of Euroseas, said of the refinancings.
“Both of these agreements along with the previously arranged debt financing for our two ultramax newbuildings and proceeds from the sale of two of our elder vessels significantly increase our near term liquidity and will enable us to take delivery of all our three newbuildings scheduled to be delivered in 2016,” he continued.
“With the drybulk market at 30-plus year lows and containership markets also very close to the lowest levels, we believe we have managed to position the company to take advantage of any cyclical market recovery over the next couple of years.”
