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Star Bulk Carriers in 16 vessel swoop

Written by Nick Blenkey
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APRIL 20, 2018 — Athens, Greece, headquartered Star Bulk Carriers Corp. (Nasdaq: SBLK) reports that it has agreed to acquire 16 vessels from entities affiliated with Augustea Atlantica SpA and York Capital Management in an all-share transaction.

According to VesselsValue.com the 16 vessels have an aggregate value of $441.04 million.

As consideration for the vessel acquisition, Star Bulk has agreed to issue approximately 10.5 million common shares to the sellers of the 16 vessels, equal to approximately 14.1% of Star Bulk’s common shares after the closing of the vessel acquisition. As part of the deal, the Star Bulk will assume debt of $310.0 million.

The deal is expected to be completed in the second quarter of 2018, subject to the execution of definitive finance agreements and customary closing conditions.

An entity affiliated with family members of Star Bulk CEO, Mr. Petros Pappas, is a passive minority investor in three of the 16 acquired vessels.

The technical management of the 16 vessels will remain with an entity affiliated with Augustea Atlantica SpA, while commercial management will be taken over by Star Bulk.


The Acquired Vessels:
Vessel YoB Yard DWT
 ABOY Sienna (1) 2017 SWS 208,000
ABOY Laetitia(1) 2017 SWS 208,000
ABOY Karlie(1) 2016 SWS 208,000
ABY Scarlett 2014 Jinhai 178,000
ABYO Audrey 2011 New Times 175,125
Paola 2011 NTS 115,259
ABML Eva 2011 STX Dalian 106,659
Piera 2010 Sungdong 91,951
Maria Laura Prima 2010 Sungdong 91,945
Aphrodite 2011 Sungdong 91,827
ABY Jeannette 2014 STX 83,000
ABY Asia(1) 2017 Sanoyas 82,000
Lydia Cafiero 2013 JMU 81,187
Nicole 2013 JMU 81,120
ABY Virginia 2015 JMU 81,000
ABY Monica 2015 JMU 60,000

Total 1,943,073

 (1) Subject to a bareboat charter accounted as a capital lease

Mr. Pappas commented: “I am very pleased that Star Bulk is acquiring a high quality, modern fleet in an all-share transaction. Combined with attractive bank financing, we believe that the transaction will be accretive to our shareholders. Star Bulk will continue to be a consolidator in the dry bulk industry.

“As part of the vessel acquisition, Star Bulk will acquire a fleet of five Newcastlemaxes / Capesize vessels, two Mini Capesize vessels, eight Post Panamax / Kamsarmax vessels and onw Ultramax vessel of 4.5 years of average age, built mainly in Japan and Korea which will provide Star Bulk with synergies and economies of scale.”

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