Dry Cargo

Star Bulk gets $227.5m loan for seven newbuildings, delays new deliveries

London: Star Bulk has secured up to $227.5m in loans from DNB Bank, SEB Bank and the Export-Import Bank of China that will be used to finance seven newbuildings, but the weak dry market has forced the Athens-based owner to delay vessel deliveries.

Following the agreement of this new term sheet, Star Bulk has secured $906.0m of committed debt financing for the 30 out of the 32 newbuildings it has under construction.

The NASDAQ-listed company says it is in the final stages of negotiating the terms for financing of the remaining two newbuildings.

“Importantly, we have agreed to defer certain pre-delivery instalments for newbuilding vessels from 2015 to 2016, as well as to delay vessel deliveries,” Petros Pappas, CEO of Star Bulk, said in a statement today.

Twenty-three of the 32 vessels Star Bulk has under construction were originally scheduled to arrive this year, with the remainder expected in 2016.

In the meantime, the Greek owner is pressing ahead with vessel divestments, announcing that it is to scrap its panamax Star Monika (71,500 dwt, built 1993) this month.

“Regarding our ships, we have disposed of five older 90s-built panamax and handymax vessels and there will be further disposals of vessels that do not fit the profile of our fleet,” Pappas said today.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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