PIRAEUS, Greece, March 13, 2008 (PRIME NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or "the Company"), a provider of seaborne transportation for drybulk cargoes, announced today that it has agreed to purchase one second-hand drybulk carrier from an unaffiliated third party for approximately US$65.2 million.
The vessel is a 2003-built, 50,300 dwt Handymax vessel built in Japan, and is scheduled for charter-free delivery to FreeSeas in June or July of 2008. The Company intends to finance the acquisition using cash on hand and the Company's existing credit facility. Employment arrangements for the vessel will be announced when finalized.
"Our constant monitoring of the second-hand market has presented us with the opportunity to acquire a modern vessel at a competitive price," said Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas. "We expect to have seven vessels fully employed and earning revenue by the beginning of second quarter, and look forward to the delivery of our latest acquisition at the beginning of the third quarter. We expect this new acquisition to substantially improve our earnings capacity and free cash flow providing us with enhanced financial flexibility. As a result, FreeSeas will have available a wider variety of options for the further expansion of its fleet."
The following tables detail FreeSeas' current fleet as announced today:
Current fleet:
Vessel Name Dwt Vessel Built Employment
Type
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Free Destiny 25,240 Handysize 1982 30-day time-charter at
$25,500 p/d
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Free Envoy 26,318 Handysize 1984 Time-charter through
April 2008 at $17,000 p/d
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Free Goddess 22,501 Handysize 1995 Time-charter through
November 2009 at
$19,250 p/d
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Free Hero 24,318 Handysize 1995 Time-charter through
February 2009 at $14,500
p/d
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Free Jupiter 47,777 Handymax 2002 Time-charter through
February 2011 at
$32,000/28,000/24,000 p/d
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Vessels to be delivered:
Vessel Dwt Vessel Built Expected Employment
Name Type Delivery
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Free 24,111 Handysize 1997 March 2008 One-year time-charter
Impala at $31,500 p/d,
commencing at delivery
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Free 24,111 Handysize 1998 March 2008 One-year time-charter
Knight at $31,500 p/d,
commencing at delivery
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Free 50,300 Handymax 2003 June-July TBD
Lady 2008
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About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of four Handysize vessels and one Handymax vessel. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at www.sec.gov. For more information about FreeSeas Inc., please go to our corporate website, www.freeseas.gr.