- Safe Bulkers acquired Japanese Post-Panamax vessel, expected to arrive in 2020.
- Company’s common stock may finance upto 50% of the purchase price.
- A restriction on transfer applicable to any issued stock for a period of 6 months.
Safe Bulkers, Inc. announced on November 26, 2018 that it has entered into a Memorandum of Agreement with an unaffiliated seller to acquire a Japanese-built, dry-bulk, Post-Panamax class, resale, newbuild vessel. The international provider of marine dry bulk transportation services, said that the vessel is expected to be delivered within the first half of 2020 reported a press release.
Details of acquisition
The Company has the option to finance up to 50% of the purchase price of the vessel through the periodic issuance of the Company’s common stock to the seller. Any such common stock issued by the Company will be subject to a restriction on transfer for a period of six months from the date of such issuance. The cash component of the purchase price will be financed with cash on hand.
Following completion of the refinancing actions designed to provide financial flexibility and improve liquidity, this acquisition reflects the Company’s commitment to opportunistically expand and renew its fleet. This vessel suits the overall fleet profile at an attractive price while providing significant financing flexibility.
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Source: Safe Bulkers