Euroseas Ltd., an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced that it has agreed to acquire M/V Piraeus Trader, a 1,740 teu container feeder vessel built in 2006, for $25.5 million, says an article published on their website.
Delivery of vessel
The vessel, which is expected to be delivered to the Company within October 2021 and be renamed M/V Jonathan P, will be financed by own funds and a bank loan.
Contemporaneously with the acquisition, the vessel will enter into a three-year time charter contract for about $26,700 per day net to the Company.
Aristides Pittas, Chairman and CEO of EuroDry commented: “We are pleased to announce the acquisition of M/V Piraeus Trader, a feeder containership, built in 2006, which is a sister vessel of two other ships in our fleet, expanding our footprint in the container feeder sector.
We believe that this acquisition represents a transaction with limited downside risk given the three year charter contract we have entered with a first class charterer.
This charter will contribute about $22 million of EBITDA during the period of the contract providing us with a significant return on our investment and reducing, by the end of the charter, the cost basis of the vessel below its current scrap value. Of course, if the market after the end of the charter in three years is anything but terrible, we are bound to have significant further upside”.
Summary
- Euroseas Ltd., an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced that it has agreed to acquire M/V Piraeus Trader.
- The vessel, which is expected to be delivered to the Company within October 2021 and be renamed M/V Jonathan P.
- This charter will contribute about $22 million of EBITDA during the period of the contract providing us with a significant return on our investment and reducing.
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Source: euroseas
