Baltic Trading Limited Exercises Option to Acquire Two Additional Ultramax Newbuildings
Continues to Execute Growth Strategy
NEW YORK, Jan. 13, 2014 /PRNewswire/ -- Baltic Trading Limited (NYSE: BALT) announced today that it has exercised its option to acquire two additional Ultramax newbuildings. The two option vessels, which will have the same specifications and purchase price as the Ultramax newbuildings Baltic Trading previously agreed to acquire, are expected to be delivered to Baltic Trading during the second and third quarters of 2015.
John C. Wobensmith, President and Chief Financial Officer, commented, "Management's strategic decision to exercise the option to acquire two additional Ultramax newbuildings is consistent with our ongoing efforts to take advantage of favorable asset prices. With four Ultramax newbuildings now scheduled to be delivered to Baltic Trading, combined with the recently completed acquisitions of two Capesize and two Handysize vessels, we are poised to more than double the size of our modern fleet on a tonnage basis. We intend to use a combination of cash on hand, future cash flow from operations as well as commercial bank debt to fully finance the acquisition of the four Ultramax newbuildings for the benefit of shareholders."
Baltic Trading Limited's Fleet
The following table reflects the current employment of vessels that are currently a part of Baltic Trading's fleet and the expected delivery dates of vessels expected to join Baltic Trading's fleet:
| Vessel |
Year Built |
Charterer |
Charter Expiration(1) |
Employment Structure |
Expected Delivery(2) |
| Capesize Vessels |
|||||
| Baltic Bear |
2010 |
Swissmarine Services S.A. |
February 2015 |
101.5% of BCI (3) |
|
| Baltic Wolf |
2010 |
Cargill International S.A. |
July 2014 |
100% of BCI (4) |
|
| Baltic Tiger |
2011 |
Swissmarine Services S.A. |
October 2014 |
102.75% of BCI (5) |
|
| Baltic Lion |
2012 |
Cargill International S.A. |
November 2014 |
102.75% of BCI (6) |
|
| Ultramax Vessels |
|||||
| Baltic Hornet |
2014 |
TBD |
TBD |
TBD |
Q3 2014 |
| Baltic Wasp |
2014 |
TBD |
TBD |
TBD |
Q4 2014 |
| Baltic Scorpion |
2015 |
TBD |
TBD |
TBD |
Q2 2015 |
| Baltic Mantis |
2015 |
TBD |
TBD |
TBD |
Q3 2015 |
| Supramax Vessels |
|||||
| Baltic Leopard |
2009 |
Resource Marine PTE Ltd. (part of the Macquarie group of companies) |
February 2014 |
95% of BSI (7) |
|
| Baltic Panther |
2009 |
Bulkhandling Handymax A/S |
May 2014 |
Spot Pool (8) |
|
| Baltic Jaguar |
2009 |
Resource Marine PTE Ltd. (part of the Macquarie group of companies) |
April 2014 |
95% of BSI (9) |
|
| Baltic Cougar |
2009 |
Bulkhandling Handymax A/S |
May 2014 |
Spot Pool (8) |
|
| Handysize Vessels |
|||||
| Baltic Wind |
2009 |
Pioneer Navigation Ltd. |
February 2014 |
$8,785 (10) |
|
| Baltic Cove |
2010 |
Cargill International S.A. |
February 2014 |
115% of BHSI (11) |
|
| Baltic Breeze |
2010 |
Cargill International S.A. |
July 2014 |
115% of BHSI (11) |
|
| Baltic Fox |
2010 |
Clipper Logger Pool |
September 2015 |
Spot Pool (12) |
|
| Baltic Hare |
2009 |
Clipper Logger Pool |
September 2015 |
Spot Pool (12) |
| (1) |
The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. |
| (2) |
The dates for the vessels being delivered in the future are estimates based on guidance received from the sellers. |
| (3) |
We have agreed to an extension with Swissmarine Services S.A. on a spot market-related time charter based on 101.5% of the average of the daily rates of the Baltic Capesize Index (BCI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited (Genco). The minimum and maximum expiration dates of the time charter are February 1, 2015 and April 15, 2015, respectively. |
| (4) |
We have reached an agreement with Cargill International S.A. on a spot market-related time charter based on 100% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 5.00% brokerage commission, which includes the 1.25% commission payable to Genco. The duration of the spot market-related time charter is 21.5 to 26.5 months. |
| (5) |
We have reached an agreement with Swissmarine Services S.A. on a spot market-related time charter for 10.5 to 13.5 months based on 102.75% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on November 29, 2013. |
| (6) |
We have reached an agreement with Cargill International S.A. on a spot market-related time charter for 10.5 to 13.5 months based on 102.75% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on December 29, 2013. |
| (7) |
We have reached an agreement with Resource Marine PTE Ltd. on a spot market-related time charter for a minimum of 18.5 months to a maximum end date of May 30, 2014 based on 95% of the average of the daily rates of the Baltic Supramax Index (BSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. |
| (8) |
We have reached an agreement to enter these vessels into the Bulkhandling Handymax A/S Pool, a vessel pool trading in the spot market of which Torvald Klaveness acts as the pool manager. The vessels have to remain in the pool for a minimum of six months, after which Baltic Trading can withdraw a vessel with three months' notice. |
| (9) |
We have reached an agreement with Resource Marine PTE Ltd. on a spot market-related time charter for a minimum of 20.5 months to a maximum end date of July 11, 2014 based on 95% of the average of the daily rates of the BSI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. |
| (10) |
We have reached an agreement with Pioneer Navigation Ltd. on a short term spot market-related time charter for 3.5 to 5.5 months in order to position the vessel for its upcoming drydocking. Hire is paid in arrears net of a 6.25% brokerage commission which includes the 1.25% commission payable to Genco. The vessel delivered to charterers on October 4, 2013. |
| (11) |
The rate for each of these spot market-related time charters is based on 115% of the average of the Baltic Handysize Index (BHSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in advance net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco. |
| (12) |
We have reached an agreement to enter these vessels into the Clipper Logger Pool, a vessel pool trading in the spot market of which Clipper Group acts as the pool manager. The vessels will remain in the pool for a minimum period of two years. |
About Baltic Trading Limited
Baltic Trading Limited is a drybulk company focused on the spot charter market. Baltic Trading transports iron ore, coal, grain, steel products and other drybulk cargoes along global shipping routes. Baltic Trading's current fleet consists of four Capesize, four Supramax and five Handysize vessels with an aggregate carrying capacity of approximately 1,095,000 dwt. After the expected delivery of the four Ultramax newbuildings that Baltic Trading has agreed to acquire, Baltic Trading will own 17 drybulk vessels, consisting of four Capesize, four Ultramax, four Supramax and five Handysize vessels with a total carrying capacity of approximately 1,351,000 dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Such statements are subject to various risks, uncertainties and assumptions, including market conditions. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: (i) the fulfillment of the closing conditions under, or the execution of additional documentation for, our agreements to acquire vessels; (ii) completion and funding of financing on acceptable terms; and other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2012 and our subsequent reports on Form 10-Q and Form 8-K. There can be no assurance that we will be able to obtain commercial bank financing or any other financing, or that if we do so, that it will be able to borrow all or any of the amounts committed thereunder. The Company may be liable for damages if vessel acquisitions fail to close as a result of the Company's unwillingness, inability or other failure to pay the purchase price under previous agreements to purchase vessels. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.
SOURCE Baltic Trading Limited
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