ATHENS, Greece, June 2, 2010 /PRNewswire-FirstCall/ -- Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP; SHIP.W) announced today that the Company has completed the final documentation, after entering into a Share and Purchase Agreement with Maritime Capital Shipping (Holdings) Limited, a company incorporated in the British Virgin Islands (the "Seller"), for the acquisition of a 51% ownership interest in Maritime Capital Shipping Limited, a company incorporated in Bermuda ("MCS"), for a purchase price of $33.0 million. The purchase price was paid to the Seller from the proceeds of the Company's recent equity offering completed in February 2010 and from the Company's cash reserves. The Seller, which is controlled by the Restis family, one of the Company's major shareholders, has retained a 49% ownership interest in MCS.
As a result of the acquisition, the size of the Company's fleet has increased from 11 to 20 dry bulk vessels, comprising four Capesize, three Panamax, two Supramax, one Handymax and 10 Handysize dry bulk carriers, with a combined cargo-carrying capacity of approximately 1.3 million dwt and an average fleet age of 12.7 years.
Dale Ploughman, the Company's Chief Executive Officer, stated: "We are pleased to announce the completion of the MCS acquisition on schedule. We view this as a strategic and transformational acquisition for Seanergy. It has increased our controlled fleet to 20 vessels while it has decreased our average fleet age, and we believe it expands our revenue and profit generation capacity.
"Furthermore, we believe the MCS acquisition enhances the overall stability and visibility of our cash flows. 89% of MCS' ownership days in 2010, 67% for 2011, 59% for 2012 and 41% for 2013 are already secured under fixed employment with corresponding revenues of approximately $117 million and EBITDA of $99 million for the respective period.
"As a result of the acquisition of MCS, our fleet will have a more balanced charter portfolio enabling us to benefit both from secured cash flows from period employment and from the expected continued market upside with the portion of our fleet opening for re-chartering. On a combined fleet basis, we have secured under period employment 93% of ownership days in 2010, 58% for 2011, 27% for 2012 and 19% for 2013.
"We believe that we acquired MCS at an attractive price. The projected adjusted EBITDA from the MCS contribution is estimated to be $23 million for the remainder of 2010 and $40 million for 2011 implying a purchase price to EBITDA multiple of 1.6 times on an annualized basis.
"In the short period of less than two years as a publicly-traded company, we have more than tripled our controlled fleet from six to 20 vessels and quadrupled our combined cargo-carrying capacity, without sacrificing the strength of our balance sheet. We also believe that the timing of the MCS acquisition is optimal, as it enables Seanergy to benefit right away from the gradual global economic recovery with a larger and younger fleet.
"Our objective is to continue to build Seanergy into a leading player in the global shipping industry with prudent and well-timed acquisitions. We believe Seanergy is one of the most undervalued companies amongst our peers and we will continue to make every effort to increase Seanergy's shareholder value."
The following tables provide information with respect to the Company's expanded controlled fleet including the MCS vessels.
SEANERGY VESSELS Vessel Name Vessel Class Capacity Year Built TC Rate Time ($) Charter (DWT) Expiry (latest) M/V Bremen Max Panamax 73,503 1993 15,500 Sept. 2010 M/V Hamburg Max Panamax 72,338 1994 15,500 Sept. 2010 M/V Davakis G. Supramax 54,051 2008 21,000 Jan. 2011 M/V Delos Ranger Supramax 54,051 2008 20,000 Mar 2011 M/V African Zebra (1) Handymax 38,623 1985 7,500 Aug. 2011 M/V African Oryx (1) Handysize 24,110 1997 7,000 Aug. 2011 M/V BET Commander (2) Capesize 149,507 1991 24,000 Dec. 2011 M/V BET Fighter (2) Capesize 173,149 1992 25,000 Sept. 2011 M/V BET Prince (2) Capesize 163,554 1995 25,000 Jan. 2012 M/V BET Scouter (2) Capesize 171,175 1995 26,000 Oct. 2011 M/V BET Intruder (2) Panamax 69,235 1993 15,500 Sept. 2011 Total 1,043,296 14.4 yrs
(1) Represents gross floor charter rates excluding a 50% adjusted profit share distributed equally between owners and charterers calculated on the average spot Time Charter Routes quoted on the Baltic Supramax Index for a period of 22 to 25 months.
(2) 50% owned and controlled by the Company. MCS VESSELS Vessel Name Vessel Capacity Year Built TC Rate ($) Time Class Charter (DWT) Expiry (latest) M/V Fiesta Handysize 29,519 1997 BHSI Nov. increased by 2013 100.63% minus Opex M/V Pacific Fantasy Handysize 29,538 1996 BHSI Jan. increased by 2014 100.63% minus Opex M/V Pacific Fighter Handysize 29,538 1998 BHSI Nov. increased by 2013 100.63% minus Opex M/V Clipper Freeway Handysize 29,538 1998 BHSI Feb. increased by 2014 100.63% minus Opex M/V African Joy Handysize 26,482 1996 13,250 Aug. 2010 M/V African Glory Handysize 24,252 1998 14,500 Dec. 2010 M/V Asian Grace Handysize 20,412 1999 13,500 Oct. 2010 M/V Clipper Glory Handysize 29,982 2007 25,000 Aug. 2012 M/V Clipper Grace Handysize 29,987 2007 25,000 Aug. 2012 Total 249,248 10.6 yrs Combined Total 1,292,544 12.7 yrs
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp., the successor to Seanergy Maritime Corp., is a Marshall Islands corporation with its executive offices in Athens, Greece. The Company is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers.
The Company's initial fleet comprised two Panamax, two Supramax, one Handymax and one Handysize dry bulk carriers that Seanergy purchased and took delivery of in the third and fourth quarters of 2008 from companies associated with members of the Restis family. In August 2009, the Company acquired a controlling interest in Bulk Energy Transport (Holdings) Limited, which owns five dry bulk carriers, four Capesize and one Panamax. In May 2010, the Company acquired a controlling interest in Maritime Capital Shipping Limited which owns nine Handysize dry bulk carriers.
The Company's current controlled fleet includes 20 dry bulk carriers (four Capesize, three Panamax, two Supramax, one Handymax and 10 Handysize vessels) with a total carrying capacity of approximately 1.3 million dwt and an average fleet age of 12.7 years.
The Company's common stock and warrants trade on the NASDAQ Global Market under the symbols "SHIP" and "SHIP.W," respectively.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that such expectations will prove to have been correct, these statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the scope and timing of Securities and Exchange Commission ("SEC") and other regulatory agency review, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the SEC. The Company's filings can be obtained free of charge on the SEC's website at http://www.sec.gov. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For further information please contact: Seanergy Maritime Holdings Corp. Dale Ploughman - Chief Executive Officer Christina Anagnostara - Chief Financial Officer Tel: +30-210-9638461 E-mail: firstname.lastname@example.org Investor Relations / Media Capital Link, Inc. Paul Lampoutis 230 Park Avenue Suite 1536 New York, NY 10169 Tel. +1-212-661-7566 E-mail: email@example.com
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