NEW YORK, Sept. 9, 2013 /PRNewswire/ -- Baltic Trading Limited (NYSE: BALT) announced today that it has taken delivery of the 2010-built Baltic Fox and the 2009-built Baltic Hare, two Handysize vessels of approximately 32,000 dwt that the Company previously agreed to acquire in July 2013. Both vessels have entered into the Clipper Logger Pool, a spot market-related Handysize pool operated by Clipper Bulk.
John C. Wobensmith, President and Chief Financial Officer, commented, "We are pleased to take delivery of the Baltic Fox and the Baltic Hare, as planned, and enter the vessels into a spot market-related vessel pool consistent with our fleet deployment strategy. The Baltic Fox and the Baltic Hare combine to expand our modern, high-quality fleet by approximately 10% on a tonnage basis while further strengthening our position in the global transportation of essential commodities and increasing our long-term earnings potential."
The Company also has executed a $22 million credit agreement with DVB Bank SE, as previously announced on July 8, 2013. Under the terms of the six-year facility, amounts borrowed will bear interest at LIBOR plus a margin of 3.35%. The credit facility is to be repaid in 24 quarterly repayment installments of $375,000 each, the first of which is payable in December 2013, and a balloon payment of approximately $13 million payable concurrently with the last repayment installment. The Company used the entire proceeds from the new facility as well as proceeds from its May 2013 equity offering to fund the acquisition of the Baltic Fox and the Baltic Hare.
Additionally, Baltic Trading has entered into an agreement to amend provisions of its 2010 senior secured revolving credit facility. Under the terms of the amended credit facility, underwritten by Nordea Bank Finland plc and Skandinaviska Enskilda Banken AB, the Company is permitted to incur additional indebtedness, subject to a new leverage covenant under which the ratio of the Company's total financial indebtedness to value adjusted total assets must not exceed 70%. In addition, the facility's commitment amount decreased from $125 million to $110 million and will be further reduced in three consecutive semi-annual reductions of $5 million commencing on May 30, 2015.
Mr. Wobensmith added, "In support of our growth initiatives, management has taken active measures to increase Baltic Trading's financial flexibility by closing a new $22 million credit facility with a global lending institution and amending our 2010 credit facility under favorable terms to allow for the incurrence of additional debt going forward. We appreciate the support that we have received from our expanded lending group and remain focused on preserving a sound capital structure as we pursue additional opportunities to take advantage of an attractive acquisition environment."
Additional information pertaining to this press release is available in the Company's current reports on Form 8-K filed today and September 5, 2013 with the Securities and Exchange Commission.
About Baltic Trading Limited
Baltic Trading Limited is a drybulk company focused on the spot charter market. The Company transports iron ore, coal, grain, steel products and other drybulk cargoes along global shipping routes. Baltic Trading currently owns 11 drybulk vessels, consisting of two Capesize, four Supramax and five Handysize vessels with a total carrying capacity of approximately 736,000 dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Such statements are subject to various risks, uncertainties and assumptions, including market conditions. Factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: (i) declines in demand or rates in the drybulk shipping industry; (ii) prolonged weakness in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube, oil, bunkers, repairs, maintenance and general, administrative, and management fee expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy; (x) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the amount of offhire time needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xii) the Company's acquisition or disposition of vessels; (xiii) our ability to leverage Genco's relationships in the shipping industry; (xiv) the completion of definitive documentation with respect to charters; and other factors listed from time to time in our public filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2012 and our subsequent reports on Form 10-Q and Form 8-K. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Baltic Trading Limited