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NewLead Holdings Ltd. Announces $148 Million Acquisition of Five Vessels
Saturday, 26 June 2010
NewLead Holdings Ltd. yesterday announced it has signed a Letter of Intent for the dropdown of five dry bulk vessels, including two newbuildings, and the right of first refusal for three newbuildings from Grandunion Inc. ("Grandunion").
The transaction is expected to be concluded in the third quarter of 2010 Total consideration for the dropdown of the five vessels is approximately $148 million, which includes assumed debt and shipyard financing.
NewLead also secured the right of first refusal for three 81,000 dwt Kamsarmaxes, being constructed at a first-class shipyard in Korea, scheduled for delivery in 2013 with long-term charters attached.
As a result of this transaction, NewLead's fleet, including newbuildings, will consist of 24 vessels-nine product tankers and 15 dry bulk carriers.
Michael Zolotas, President and Chief Executive Officer stated, "NewLead continues to expand its fleet in line with its growth strategy.
Since NewLead's recapitalization during the fourth quarter of 2009, the Company acquired 17 vessels, including five newbuildings, while divesting inefficient non-core vessels and exiting the container sector.
By expanding and diversifying the fleet, NewLead has positioned itself to capture opportunities in the two segments in which it operates.
We will continue to pursue our fleet growth strategy as we build the Company's competitive position."
Source: NewLead Holdings Ltd.
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=107904&Itemid=95
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NewLead (NEWL)/ website:
http://www.newleadholdings.com/
NEWL:
http://www.nasdaq.com/aspx/nasdaqlastsale.aspx?symbol=NEWL&selected=NEWL
