Star Bulk Carriers Corp. (NASDAQ: SBLK) has signed a contract with ship-builder Hanjin to build a second capesize vessel of 180,000 deadweight tons, a sistership to the first vessel ordered, with expected delivery in November 2011.
The company intends to finance both newbuildings through a combination of company cash and bank debt. Star Bulk has received offers for debt financing at favorable financing cost/terms. The company has not yet decided the ratio of company cash to bank debt that it will utilize.
Akis Tsirigakis, President and CEO of Star Bulk, commented: "We are pleased to continue our organic growth through another most competitive acquisition of a newbuilding capesize vessel from a high quality ship builder. We are also pleased that our senior debt lenders continue to support our acquisition plans via offers of favorable financing terms.
"Currently, our fleet is contracted for 92% of 2010 and 58% of 2011 operating days, amongst the highest contract coverage in the industry, providing future earnings visibility. We continue to focus on enhancing shareholder value, supported by our strong balance sheet and liquidity."