GOGL - Acquisition of 16 modern dry bulk vessels
(Thomson Reuters ONE) -
Golden Ocean Group Limited (NASDAQ and OSE: GOGL) ("Golden Ocean" or "the
Company") today announced that it has entered into agreements to acquire 16
modern dry bulk vessels in an all-share transaction where the Company will issue
in aggregate 17.8 million consideration shares and assume debt of USD 285.2
million (the "Acquisition"). Of the 16 vessels to be acquired, 14 will be
acquired from subsidiaries of Quintana Shipping Ltd. ("Quintana"), and two ice
class Panamax vessels will be acquired from subsidiaries of Seatankers, an
affiliate of Hemen Holding Ltd. ("Hemen"), the Company's largest shareholder.
The Acquisition will add significant scale to Golden Ocean's operating fleet and
contribute to reducing cash breakeven levels. Based on the closing price of the
Golden Ocean share on the Oslo Stock Exchange on March 14, 2017 of NOK 61.50,
equal to USD 7.14 per share at a USD/NOK exchange rate of 8.6078, the aggregate
transaction value is approximately USD 412.4 million.
Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, commented:
"We are proud to be in the position to acquire a large number of modern, high
quality vessels in an all-share transaction. This underscores the value the
sellers ascribe to our operating platform, management team and corporate
strategy. The acquired vessels, averaging 4 years of age, which matches the age
profile of our existing fleet, will further enhance our already significant
commercial scale and increase our operational leverage to a potential dry bulk
market recovery. Combined with attractive bank financing which includes no
fixed debt amortization and soft covenants through June 2019, the transaction
should be accretive also in terms of cash breakeven levels. We consider the
price obtained to be attractive and expect the transaction to be significantly
value-accretive to our shareholders."
As part of the Acquisition, Golden Ocean will acquire Quintana's 14 vessel fleet
and assume the fleet's corresponding debt of USD 262.7 million in consideration
for 14.5 million shares of Golden Ocean. Golden Ocean has agreed to a USD 17.4
million down payment of the debt associated with the fleet in order to obtain no
fixed debt repayments and soft covenants through June 2019. A cash sweep
mechanism will be in place for excess cash generated by the fleet. The fleet
consists of 6 Capesize vessels and 8 Kamsarmax/Panamax vessels, mainly built in
Japan and Korea. The vessels will be owned by a non-recourse subsidiary to
Golden Ocean.
Additionally, Golden Ocean will acquire two 2017-built ice class Panamax vessels
from affiliates of Hemen in consideration for 3.3 million shares of the Company
to fund the equity portion of the acquisition. Hemen will issue a seller credit
of USD 22.5 million that matures in June 2019, with no fixed amortization. These
vessels will also be owned by a non-recourse subsidiary of Golden Ocean.
Completion of the Acquisition is subject to the execution of definitive loan
documents, Golden Ocean raising sufficient new equity to satisfy certain loan
conditions, customary closing conditions and regulatory approvals. Closing is
expected to be during the second quarter of 2017 and on a vessel-by-vessel
basis.
DNB Markets is acting as financial advisor to the Company in connection with the
Acquisition.
About Golden Ocean
Golden Ocean, a leading dry bulk shipping company, will after this transaction
own or control a modern fleet of 77 vessels and six Capesize newbuilding
contracts. On a fully-delivered basis, Golden Ocean's fleet will have an
aggregate carrying capacity of approximately 11.0 million deadweight tons
("DWT") and an average age of less than 5 years on a DWT basis. Golden Ocean's
significant scale is further enhanced by its commercial management platform,
which manages 45 additional vessels on behalf of third parties. Golden Ocean is
listed on the NASDAQ and Oslo Stock Exchange under the symbol 'GOGL.'
The Board of Directors
Golden Ocean Group Limited
March 14, 2017
Hamilton, Bermuda
Contact Persons:
Birgitte Ringstad Vartdal: CEO, Golden Ocean Management AS
+47 22 01 73 53
Per Heiberg: CFO, Golden Ocean Management AS
+47 22 01 73 45
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements, which include statements
concerning plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other than statements
of historical facts. Words such as "believe", "anticipate", "intends",
"estimate", "forecast", "project", "plan", "potential", "may", "should",
"expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections. The information set forth herein
speaks only as of the date hereof, and we disclaim any intention or obligation
to update any forward-looking statements as a result of developments occurring
after the date of this communication.
In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire rates and
vessel values, changes in demand in the dry bulk market, changes in our
operating expenses, including bunker prices, drydocking and insurance costs, the
market for our vessels, availability of financing and refinancing, changes in
governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due
to accidents, political events or acts by terrorists, and other important
factors described from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
This information is subject to the disclosure requirements of section 5-12 of
the Norwegian Securities Trading Act.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golden Ocean Group Limited via GlobeNewswire
Datum: 14.03.2017 - 21:14 Uhr
Sprache: Deutsch
News-ID 530196
Anzahl Zeichen: 7858
contact information:
Town:
Hamilton
Kategorie:
Business News
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"GOGL - Acquisition of 16 modern dry bulk vessels"
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