In a statement the companysaid the first of the 179,200-dwt units has been renamed Baltic Tiger and fixedto Swissmarine for 10.5 to 13.5 months.
The US-quoted bulker owner pointedout that the deal, which is subject to definitive documentation, includes afreight rate that is linked to the performance of an index published by theBaltic Exchange.
It noted levels are based on102.75% of the average of the daily rates of theBaltic Capesize Index (BCI), and indicated that hire will be paid every 15 daysin arrears, net of a 6.25% brokerage commission, of which 1.25% will go to affiliateGenco Shipping & Trading.
According to securities filings, Baltic Tradingused available cash to cover the $40.4m balance owed on the Baltic Tiger andintends to refinance a portion of the vessel’s purchase price with proceedsfrom a credit facility.
“The company has received a commitment for a $44m facility with a globallending institution for the financing of the two capesize vessels it has agreedto acquire, the Baltic Tiger and the Baltic Lion,” it said.
“Under the terms of the six-year facility, amounts borrowed are to bearinterest at LIBOR plus a margin of 3.35%. The credit facility is to be repaidin 24 quarterly repayment installments of $687,500, the first of which ispayable in March 2014, and a balloon payment of approximately $27.5m payableconcurrently with the last repayment installment.”
As we reported, Baltic Trading made headlines when it owned up to the $103m acquisition oftwo capesize bulkers thatTradeWindsidentified as SK Shipping’s 179,200-dwt K Happiness (built 2011) and the KGlobal Pride (built 2012).
Today, theVesselsValue.com platform believes the vessels to be worth around $49m a piecein today’s sale-and-purchase market, which has seen asset prices soar in recentweeks due in large part to growing speculation that the darkest days of thedownturn are behind us.
