John Fredriksen’s Golden Ocean Group has announced the acquisition of two capesize vessels from affiliates of Fredriksen’s Hemen Holding at a purchase price of $43m per vessel.
Golden Ocean will enter into a non-amortiszing seller’s credit loan with an affiliate of Hemen for 50% of the purchase price, and the remaining part of the purchase price will be settled with $9m of cash and $34m of newly-issued common shares of the company.
Following completion of the acquisition, Hemen will hold a 34.2% stake of Golden Ocean.
“We are pleased to be in the position to acquire high quality, modern capesize vessels that are expected to generate free cash flow immediately upon delivery. This transaction is consistent with our strategy of focusing our commercial efforts on the vessel segments that we believe will provide the greatest leverage to a recovery in the dry bulk shipping market,” said Birgitte Ringstad Vartdal, CEO of Golden Ocean Management.
Additionally, Golden Ocean intends to terminate the covenant waivers related to the company’s recourse debt upon completion of the expected equity offering as the company’s financial position has been enhanced significantly over the past 12 months.
“This will reinstate the normal covenants, which the company is now in compliance with, and remove the company’s restrictions on new acquisitions, new debt and dividend payments,” Vartdal said.
Golden Ocean has been expanding its fleet this year, having acquired the entire fleet of Quitana Shipping in March, and has made clear it is looking for more acquisitions.
