Safe Bulkers Acquires Post-Panamax Class Dry-Bulk Japanese Vessel

Safe Bulkers has entered into an agreement for the acquisition of dry-bulk vessel to be delivered in the third quarter of 2022, in addition to a new term loan facility.

Alex Stemmer
Alex Stemmer

Safe Bulkers, Inc. an international provider of marine drybulk transportation services, announced that it has entered into an agreement for the acquisition of a Japanese-built, dry-bulk, Post-Panamax class, 87,000 dwt, newbuild vessel at an attractive price with a scheduled delivery within the third quarter of 2022. The vessel is designed to meet the latest requirements of Energy Efficiency Design Index related to Green House Gas, GHG emissions, ‘EEDI, Phase 3’. It will also comply with the latest NOx emissions regulation, NOx-Tier III.

In parallel, the Company has entered into an agreement for a new term loan facility of up to 60% post-delivery financing of this acquisition, an increase of the commitment under the existing revolving credit facility from $20 million to $30 million and the extension of its maturity date, initially scheduled to expire in 2022, by up to 2 years under the same pre-existing financial covenants. The financing transaction was evaluated and approved by the board of directors of the company, excluding an independent member of the board of the company, who serves as the CEO of the financial institution that is the lender in the transaction.

Presently, the company’s liquidity stands at $167.5 million including cash and cash equivalents, restricted cash and funds available under sale and lease back agreement, new term loan agreement and the revolving credit facility. Our aggregate remaining capital expenditure requirements for the acquisition of this newbuild and the newbuild contracted for in October 2020 are $51.8 million.

Loukas Barmparis, president of the company commented: "We continue to invest in technologically advanced vessels complying with the latest environmental regulations in an effort to renew our fleet. The Company’s capital expenditure requirements for the purchase of this newbuild are being financed through the new financial agreements. Safe Bulkers maintains a strong financial position with liquidity exceeding $167 million, that provides us with the required financial flexibility, and a previously announced at the market equity offering, that may be utilized at stock prices levels and at times that the Company deems to be appropriate."