BALT seals cape raid

US operator Baltic Trading appears to have completed the acquisition of two capesize bulkers.
Peter Georgiopoulos

Both BALT and GNK are led by chairman Peter Georgiopoulos.

In a statement the company said the first of the 179,200-dwt units has been renamed Baltic Tiger and fixed to Swissmarine for 10.5 to 13.5 months.

The US-quoted bulker owner pointed out that the deal, which is subject to definitive documentation, includes a freight rate that is linked to the performance of an index published by the Baltic Exchange.

It noted levels are based on 102.75% of the average of the daily rates of the Baltic Capesize Index (BCI), and indicated that hire will be paid every 15 days in arrears, net of a 6.25% brokerage commission, of which 1.25% will go to affiliate Genco Shipping & Trading.

According to securities filings, Baltic Trading used available cash to cover the $40.4m balance owed on the Baltic Tiger and intends to refinance a portion of the vessel’s purchase price with proceeds from a credit facility.

“The company has received a commitment for a $44m facility with a global lending institution for the financing of the two capesize vessels it has agreed to acquire, the Baltic Tiger and the Baltic Lion,” it said.

“Under the terms of the six-year facility, amounts borrowed are to bear interest at LIBOR plus a margin of 3.35%. The credit facility is to be repaid in 24 quarterly repayment installments of $687,500, the first of which is payable in March 2014, and a balloon payment of approximately $27.5m payable concurrently with the last repayment installment.”

As we reported, Baltic Trading made headlines when it owned up to the $103m acquisition of two capesize bulkers that TradeWinds identified as SK Shipping’s 179,200-dwt K Happiness (built 2011) and the K Global Pride (built 2012).

Today, the VesselsValue.com platform believes the vessels to be worth around $49m a piece in today’s sale-and-purchase market, which has seen asset prices soar in recent weeks due in large part to growing speculation that the darkest days of the downturn are behind us.

Baltic Trading
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