Safe Bulkers, Inc. Pursues Its Fleet Renewal & Deleveraging Strategy

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Safe Bulkers, Inc., pursues its fleet renewal and deleveraging strategy, says a press release published on their website.

The two agreements

Safe Bulkers, Inc., an international provider of marine dry bulk transportation services, announced that in relation to its fleet renewal strategy, it has entered into agreements:

i) for the acquisition of two Japanese-built, dry-bulk, Post-Panamax class, 87,000 dwt, newbuild vessels at attractive prices with scheduled delivery dates within the first and the second quarter of 2023 respectively;

ii) for the sale of two Chinese 2012 built, Kamsarmax class, 82,000 dwt vessels at gross sale prices of $22.5 and $22.0 million with scheduled delivery dates within the second and third quarter of 2021 respectively.

The Company’s consolidated debt before deferred financing costs has been reduced from $607.6 million on March 31, 2021, to $593.7 million as of today.

Vessels designed to meet regulations

The newbuild vessels are designed to meet the requirements of Energy Efficiency Design Index related to Green House Gas, GHG emissions, ‘EEDI, Phase 3’ and also comply with the NOx emissions regulation, NOx-Tier III and will be financed from the cash reserves of the Company.

Sale and leaseback agreement

On a proforma basis reflecting the above transactions and the previously announced sale and leaseback agreement for an existing vessel of $24.3 million for the refinancing of a $16.3 million outstanding term loan facility the consolidated debt before deferred financing costs is expected to be further reduced to about $546.4 million.

Dr. Loukas Barmparis, President of the Company commented: “Safe Bulkers is continuing its renewal strategy since December 2020, by ordering two additional newbuilds with attractive delivery dates, bringing their total number to four GHG – EEDI Phase 3, NOx-Tier III newbuilds and one second-hand acquisition and by selectively selling in a total of four older vessels. At the same time, the Company is accelerating its deleveraging, maintaining a strong liquidity position.”

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Source: SafeBulkers

 

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