STAR BULK AGREES ON FINANCING FOR ITS CAPESIZE NEWBUILDINGS AND ENTERS INTO A ONE YEAR TIME CHARTER FOR THE STAR EPSILON
News Release
Star Bulk Carriers Corp.
January 14, 2011
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<DIV><FONT color=#2b2b2b size=2 face=Arial>ATHENS, GREECE, January 13, 2011-
Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), today
announced the following: <BR><BR>Two Capesize Newbuildings: Debt Finance Agreed
<BR><BR>The Company has signed commitment letters with a major European bank for
senior debt financing of both capesize vessels, currently under construction,
for up to 60% of the vessels' price at favorable financing cost and terms. The
loans cover the entire remaining payments to the shipyard for both vessels,
therefore the Company is not required to contribute any additional equity until
their completion. <BR><BR>Star Epsilon: One Year Time Charter <BR><BR>The
Company has entered into a time charter contract with Norden for the Star
Epsilon for one year, plus an option for one additional year, at a gross daily
rate of $16,100. The Star Epsilon is a Supramax vessel of 52,402 dwt built in
2001. The new contract will contribute a minimum of $5.8 million to a maximum of
$11.6 million in gross revenue. <BR><BR>Akis Tsirigakis, President and CEO of
Star Bulk, commented: "We are pleased to enjoy the continued support of senior
debt lenders for our growth plans and to have demonstrated the ability to source
competitive financing. We also continue with our strategy of stable contracted
employment with quality counterparties. Currently, our fleet is contracted for
69% of 2011 operating days, amongst the highest contract coverage in the
industry, which amply covers our dividends and finance commitments allowing
positive cash flows. We continue to focus on enhancing shareholder value
supported by our strong balance sheet and liquidity."
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<DIV><FONT color=#2b2b2b size=2 face=Arial>ATHENS, GREECE, January 13, 2011-
Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), today
announced the following: <BR><BR>Two Capesize Newbuildings: Debt Finance Agreed
<BR><BR>The Company has signed commitment letters with a major European bank for
senior debt financing of both capesize vessels, currently under construction,
for up to 60% of the vessels' price at favorable financing cost and terms. The
loans cover the entire remaining payments to the shipyard for both vessels,
therefore the Company is not required to contribute any additional equity until
their completion. <BR><BR>Star Epsilon: One Year Time Charter <BR><BR>The
Company has entered into a time charter contract with Norden for the Star
Epsilon for one year, plus an option for one additional year, at a gross daily
rate of $16,100. The Star Epsilon is a Supramax vessel of 52,402 dwt built in
2001. The new contract will contribute a minimum of $5.8 million to a maximum of
$11.6 million in gross revenue. <BR><BR>Akis Tsirigakis, President and CEO of
Star Bulk, commented: "We are pleased to enjoy the continued support of senior
debt lenders for our growth plans and to have demonstrated the ability to source
competitive financing. We also continue with our strategy of stable contracted
employment with quality counterparties. Currently, our fleet is contracted for
69% of 2011 operating days, amongst the highest contract coverage in the
industry, which amply covers our dividends and finance commitments allowing
positive cash flows. We continue to focus on enhancing shareholder value
supported by our strong balance sheet and liquidity."
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