November 12, 2009
International Shipholding buys bulker newbuild trio
Moblie, Alabama, headquartered International Shipholding Corporation (NYSE: ISH) today announced that it has entered into an agreement to purchase three 36,000 dwt Handysize double hull dry bulk carrier newbuildings with an option for a fourth newbuilding. The three new vessels will be constructed at Hyundai Mipo Dockyard Co., Ltd. and are expected to be delivered between December 2010 and February 2011.
Chairman and CEO Niels M. Johnsencommented, "We are pleased to finalize an agreement to purchase three new Handysize double hull dry bulk carriers. We believe these quality, high specification newbuilding vessels will provide important long-term strategic benefits to International Shipholding Corporation, positioning the company to increase both its diversified fleet and earnings potential during a time when we continue to distribute dividends to our shareholders. Consistent with our operating strategy, we intend to employ the new vessels on medium to long-term contracts."
The total delivered cost for the three newbuildings is expected to be approximately $90 million. On signing the agreement for the three vessels, International Shipholding Corporation paid an initial installment of $17 million using available cash. Future installments will be paid over the construction period with the final installment due upon delivery of each vessel. The company plans to fund the remaining installments through a combination of borrowings under its revolving credit facility, available cash and long-term financing.