Scorpio Bulkers Inc. Announces Acquisition of Three Ultramax Vessels and One Kamsarmax Vessel
07 November 2017 - 8:10AM
Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the
“Company”), announced today that it has entered into two separate
agreements with unaffiliated third parties to acquire three
Ultramax dry bulk vessels and one Kamsarmax dry bulk vessel for an
aggregate of $90 million, of which $77.1 million is payable in cash
and the remaining consideration is in the form of approximately
1.592 million common shares of the Company to be issued to one of
the sellers.
All of the Ultramax vessels were built at
Chengxi Shipyard Co Ltd in China, of which two were delivered in
2014 and one was delivered in 2015. The Kamsarmax bulk
carrier is a resale unit whose construction will be supervised by
the Company and which will be delivered from Jiangsu New
Yangzijiang Shipbuilding Co Ltd in China in the second quarter of
2018.
The cash component of the vessel acquisitions
will be funded by cash on hand, as well as new debt facilities
which are currently under discussion with the Company’s
lenders.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of
dry bulk commodities. Scorpio Bulkers Inc., after the completion of
its recent acquisitions of nine Ultramax vessels and one Kamsarmax
vessel, will own or finance lease 56 vessels, consisting of 19
Kamsarmax vessels and 37 Ultramax vessels. The Company also time
charters-in one Ultramax vessel. The owned fleet will have a
total carrying capacity of approximately 3.9 million deadweight
tonnes upon the completion of the acquisition of the nine Ultramax
vessels and one Kamsarmax vessel. Additional information about the
Company is available on the Company’s website
www.scorpiobulkers.com, which is not a part of this press
release.
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words “believe,” “anticipate,” “intend,” “estimate,” “forecast,”
“project,” “plan,” “potential,” “may,” “should,” “expect,”
“pending” and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the failure of counterparties to fully perform
their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for dry bulk
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, changes in
governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires and other factors.
Please see our filings with the SEC for a more complete discussion
of these and other risks and uncertainties.
Contact Information
Scorpio Bulkers Inc.+377-9798-5715 (Monaco)+1-646-432-1675 (New
York)
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