PIRAEUS, Greece, March 23, 2009 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) (FreeSeas or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, announced today that it has successfully negotiated to extend and modify time-charter agreements for two of its vessels, the Free Envoy and the Free Goddess.
In order to secure cash flow for a longer period, the Company has agreed to extend the charters on two of its vessels, which had been scheduled to expire over the next few months. All of FreeSeas' charters are with high quality counterparties who continue to perform without disruption. With the signing of these extensions, FreeSeas has agreements for approximately 53% of its available days in 2009, which represents approximately $45 million in revenue.
Details of Extended and Modified Charter Agreements
The charter on the Free Envoy was extended until July/August 2009 and the rate was reduced to $20,000 per day until the new expiration date.
The charter on the Free Goddess was extended until January/February 2010 on the following terms:
-- A lump-sum amount of $500,000 has been paid by the charterer
as an upfront non-refundable performance guarantee;
-- Charter rate of $8,000 per day to September 15, 2009, with an
additional 50% profit sharing for any amounts earned by the
Company's charterers in excess of $10,000 per day; and
-- Charter rate of $10,500 per day starting September 15, 2009
(until January/February 2010), with an additional 50% profit
sharing for amounts earned by the Company's charterers in
excess of $12,500 per day.
Fleet Employment Data
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Vessel Name Dwt Type Built Employment
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Free Destiny 25,240 Handysize 1982 Spot time charter trip of 2-4
months at $4,000 per day
through April/June 2009
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Free Envoy 26,318 Handysize 1984 Balance of time-charter at
$20,000 per day through
July/August 2009
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Free Goddess 22,051 Handysize 1995 Balance of time-charter
through September 2009 at
$8,000 per day (+50% profit
sharing above $10,000);
increases to $10,500 per day
on September 15, 2009 through
January/February 2010 (+50%
profit sharing above $12,500
per day)
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Free Hero 24,318 Handysize 1995 60 day spot time charter trip
through April 2009 at $4,500
per day
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Free Impala 24,111 Handysize 1997 45 day spot time charter trip
through March 2009 at $6,500
per day
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Free Jupiter 47,777 Handymax 2002 Balance of time charter at
$28,000 per day through March
2010 and 24,000 per day
through March 2011
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Free Knight 24,111 Handysize 1998 40 day spot time charter trip
through April 2009 at $7,000
per day
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Free Lady 50,246 Handymax 2003 Balance of time charter at
$51,150 per day through
May 2010
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Free Maverick 23,994 Handysize 1998 Balance of time charter
through April 2009 at $32,000
per day
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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 seven Handysize vessels and two Handymax vessels. 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 http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, http://www.freeseas.gr.
The FreeSeas Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5981
Forward-Looking Statements
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, including expected vessel acquisitions. 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 the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be 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, changes in the demand for dry bulk vessels; 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 Securities and Exchange Commission. The Company expressly disclaims any obligation 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.