The minor bulks specialist will acquire a 2010-built 58,000 dwt supramax for $15.5m, a 64,000 dwt supramax 2018 resale newbuilding for $28m, a 2015-built 37,000 dwt handysize for $20.5m and another 37,000 dwt handysize 2018 resale newbuilding for $24.5m.
Pacific Basin is staying true to its philosophy of acquiring good quality Japanese-built tonnage at attractive prices, with the former two built by Tsuneishi yards and the latter two in Imabari. It had also The company acquired a 2009 Japanese-built 32,000 dwt Handysize log/bulk carrier last month in an all-cash deal with expected delivery in June 2018. The latest acquisitions will bring Pacific Basin’s owned fleet to 111 ships.
Done through vessel holding company PB Vessels Holding, the purchase will be fulfilled through the issue of 170.8m new shares which will raise $44.3m, and $44.2m in cash. Estimated delivery for the second hand vessels is between the fourth quarter of this year and the first quarter of 2019, and for the resale newbuildings is between mid-year and the end of the year.
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Explaining its rationale for the move, Pacific Basin said in a press release that the purchase enabled the company to grow and renew its fleet with modern, efficient ships of the best design for its trades at still historically low prices while also enhancing operating cash flow while strengthening its balance sheet as the transactions lower breakeven levels and are accretive to earnings per share.
The acquisition will also increase further the proportion of Pacific Basin’s owned compared to chartered-in vessels, especially in the Supramax segment, at what its considers to be an attractive time
In addition, Pacific Basin noted that one of the acquisitions is currently under a long-term time charter which will subsequently be terminated when it takes over, thus cutting charter costs and significantly lowering operating costs.
The new shares to be issued will comprise about 3.7% of the company’s enlarged share capital and at an issue price of HK2.036 per share are priced equal to the average closing price for the last five trading days immediately prior to the date of the ship acquisition contracts.
The company reiterated that it can do these kinds of deals “because reputable Japanese shipowners believe in the longer term prospects for Pacific Basin and its ability to create shareholder value”
Pacific Basin had previously acquired a quintet of bulkers for $104.6m in August last also through a combination new share issue and cash deal.
Read More: Pacific Basin buying five bulker carriers for $104.6m
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