Golden Ocean announces acquisition of 16 modern dry bulk vessels
Golden Ocean Group Limited has entered into agreements to acquire 16 modern dry bulk vessels in an all-share transaction where Golden Ocean will issue in aggregate 17.8 million consideration shares and assume debt of USD 285.2 million. Of the 16 vessels to be acquired, 14 will be acquired from subsidiaries of Quintana Shipping Ltd., and two ice class Panamax vessels will be acquired from subsidiaries of Seatankers, an affiliate of Hemen Holding Ltd., Golden Ocean'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.
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 Golden Ocean 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.
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.'
