NEW YORK, NY--(Marketwire - May 31, 2007) - Star Maritime Acquisition Corp. (
AMEX:
SEA), a
Delaware corporation ("Star Maritime" or the "Company"), announced today
that TMT Co., Ltd. ("TMT") has procured a time-charter for the M/V J
Duckling (to be re-named M/V Star Theta), at a gross daily charter rate of
USD 32,500 to Hyundai Merchant Marine (HMM) for a period of 23-25 months
commencing at the end of May 2007. The M/V J Duckling is a Supramax bulk
carrier built in 2003 with a carrying capacity of 52,425 deadweight tons
(dwt). The vessel is one of eight drybulk carriers to be acquired by Star
Bulk Carriers Corp., a wholly owned Marshall Islands subsidiary of Star
Maritime ("Star Bulk"). As of this date, seven of the eight drybulk
carriers in the fleet to be acquired are covered by time charters. Star
Maritime stockholders will be asked to vote on the merger of Star Maritime
with and into Star Bulk with Star Bulk as the surviving corporation (the
"Redomiciliation Merger").
Definitive Agreements to Acquire the Initial Fleet of Eight Vessels:
Star Bulk previously entered into definitive agreements to acquire a fleet
of eight drybulk carriers consisting of two Capesize, one Panamax and five
Supramax drybulk carriers with an average age of approximately 10 years and
a combined cargo-carrying capacity of 691,213 deadweight tons from certain
wholly owned subsidiaries of TMT, a global shipping company with management
headquarters in Taiwan. The aggregate purchase price is $345,237,520,
consisting of $224,500,000 in cash and 12,537,645 shares of Star Bulk's
common stock.
Star Bulk's acquisition of the eight drybulk carriers from TMT is
contingent upon stockholder approval of the Redomiciliation Merger,
following which Star Maritime will be merged out of existence and Star
Bulk, the surviving entity, will be governed by the laws of the Republic of
the Marshall Islands.
Set forth below is summary information for the vessels Star Bulk has agreed
to acquire from certain subsidiaries of TMT. TMT has procured charters with
third parties for five of the eight vessels. Furthermore, Star Bulk has
entered into time charter agreements with TMT as the charterer for an
additional two of the eight vessels.
Daily
Time
Time Charter
To be Year Charter Hire
TMT Vessel renamed Type DWT Built Term Rate
------------ -------- -------- ------ -------- --------
A Duckling Star Alpha Capesize 175,075 1992 3 years $ 47,500
------------ -------- -------- ------ -------- --------
B Duckling Star Beta Capesize 174,691 1993 Spot N/A
------------ -------- -------- ------ -------- --------
C Duckling Star Gamma Supramax 53,098 2002 1 year $ 28,500
------------ -------- -------- ------ -------- --------
F Duckling Star Delta Supramax 52,434 2000 2 years $ 25,800
------------ -------- -------- ------ -------- --------
G Duckling Star Epsilon Supramax 52,402 2001 2 years $ 25,550
------------ -------- -------- ------ -------- --------
I Duckling Star Zeta Supramax 52,994 2003 1 year $ 30,500
------------ -------- -------- ------ -------- --------
J Duckling Star Theta Supramax 52,425 2003 2 years $ 32,500
------------ -------- -------- ------ -------- --------
Mommy
Duckling Star Iota Panamax 78,585 1983 1 year $ 18,000
------------ -------- -------- ------ -------- --------
About Star Maritime Acquisition Corp.
Star Maritime Acquisition Corp. (
AMEX:
SEA) is a blank check company formed
to make an acquisition, through a merger, capital stock exchange, asset
acquisition or similar business combination in the shipping industry. In
December 2005, Star Maritime through its initial public offering raised
approximately $188.7 million, which was deposited in a trust account, and
$11.3 million in a private placement to certain officers and directors and
has dedicated its time since the initial public offering to seeking and
evaluating business combination opportunities.
Forward-Looking Statements
The information in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
statements regarding: (1) the delivery and operation of assets of Star
Bulk; (2) Star Bulk's future operating or financial results; (3) future,
pending or recent acquisitions, business strategy, areas of possible
expansion, and expected capital spending or operating expenses; (4) drybulk
market trends, including charter rates and factors affecting vessel supply
and demand; and (5) other statements identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," "will,"
"should," "may," or words of similar meaning.
Such forward-looking statements are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including without
limitation, Star Maritime and Star Bulk's examination of historical
operating trends, data contained in their records and other data available
from third parties. Although Star Maritime and Star Bulk 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 their control, Star
Maritime and Star Bulk cannot assure you that Star Maritime or Star Bulk
will achieve or accomplish these expectations, beliefs or projections.
Important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure of
Star Maritime to obtain the requisite stockholder approval, failure of a
seller to deliver one or more vessels, the strength of world economies and
currencies, general market conditions, including changes in charterhire
rates and vessel values, changes in demand that may affect attitudes of
time charterers to scheduled and unscheduled drydocking, changes in Star
Bulk's operating expenses, including bunker prices, dry-docking and
insurance costs, or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents and political events or acts by terrorists. Additional factors
that could cause Start Maritime's and Star Bulk's results to differ
materially from those described in the forward-looking statements can be
found in Star Maritime's reports (such as Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) and Star
Bulk's Registration Statement Form F-1/F-4 filed with the Securities and
Exchange Commission (the "SEC") and available at the SEC's Internet site
(
http://www.sec.gov). The information set forth herein speaks only as of
the date hereof, and Star Maritime and Star Bulk disclaim any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Important Notices
STAR MARITIME AND ITS DIRECTORS AND EXECUTIVE OFFICERS MAY BE DEEMED TO BE
PARTICIPANTS IN THE SOLICITATION OF PROXIES FOR THE SPECIAL MEETING OF STAR
MARITIME'S STOCKHOLDERS TO BE HELD TO APPROVE THE TRANSACTION DESCRIBED IN
THIS PRESS RELEASE. STOCKHOLDERS OF STAR MARITIME AND OTHER INTERESTED
PERSONS ARE ADVISED TO READ STAR MARITIME'S PRELIMINARY PROXY STATEMENT AND
DEFINITIVE PROXY STATEMENT WHEN AVAILABLE BECAUSE THESE PROXY STATEMENTS
CONTAIN IMPORTANT INFORMATION.
SUCH PERSONS ARE ALSO ADVISED TO READ STAR MARITIME'S ANNUAL REPORT ON FORM
10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006, FILED ON MARCH 14, 2006,
AS WELL AS STAR MARITIME'S QUARTERELY REPORT ON FORM 10-Q FOR THE FISCAL
QUARTER ENDED MARCH 31, 2007 FILED ON MAY 10, 2007 FOR A DESCRIPTION OF THE
SECURITY HOLDINGS OF STAR MARITIME'S OFFICERS AND DIRECTORS AND THEIR
RESPECTIVE INTERESTS SHOULD THE BUSINESS COMBINATION BE CONSUMMATED.
THE DEFINITIVE PROXY STATEMENT WILL BE MAILED TO STOCKHOLDERS AS OF A
RECORD DATE TO BE ESTABLISHED FOR VOTING ON THE BUSINESS COMBINATION.
STOCKHOLDERS WILL ALSO BE ABLE TO OBTAIN A COPY OF THE DEFINITIVE PROXY
STATEMENT, WITHOUT CHARGE, BY DIRECTING A REQUEST TO:
STAR MARITIME ACQUISITION CORP.
103 FOULK ROAD
WILMINGTON, DELAWARE 19803
ATTENTION: CORPORATE SECRETARY
THE PRELIMINARY PROXY STATEMENT AND DEFINITIVE PROXY STATEMENT, ONCE
AVAILABLE, THE ANNUAL REPORT ON FORM 10-K AND QUARTERLY REPORT ON FORM 10-Q
CAN ALSO BE OBTAINED, WITHOUT CHARGE, AT THE SECURITIES AND EXCHANGE
COMMISSION'S INTERNET SITE AT
HTTP://WWW.SEC.GOV.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful under the securities laws of such jurisdiction.
Contact Information: Star Maritime Acquisition Corp.
103 Foulk Road
Wilmington, Delaware 19803
www.starmaritimecorp.com
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: nbornozis@capitallink.com
www.capitallink.com