NYSE-listed dry bulk owner Safe Bulkers has found work for its latest acquisition, a 2012-built Japanese capesize bulker.
The bulker, which is scheduled for delivery in November, will be named Stelios Y and go out on a three-year charter at a rate of $24,400 per day.
Safe Bulkers says the charter, which also has extension options for an additional year, will generate around $26.7m of revenue. The company acquired the vessel for a total of $32.3m via a one-year bareboat charter with an option to acquire. The S&P deal included a down payment of $4.5m on signing, and requires a payment of $4.5m on delivery of the vessel, a payment of a daily charter rate of $14,500 for the first year, and includes a purchase option at the end of the charter of $18m.
Loukas Barmparis, president of Safe Bulkers, commented: “We have developed this attractive period time charter for our new cape which enhances visibility of our future cash flows. The revenue of the Company for the minimum charter period of 3 years compares well with the investment cost of the vessel, noting furthermore that the residual steel value of the vessel today is about $14.5 million.”
