Contact Information: Contacts: Company: George Syllantavos CFO Star Bulk Carriers Corp. 7 Fragoklisias Street Maroussi 15125 Athens, Greece Tel: +30 210 6178400 www.starbulk.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 www.capitallink.com
Star Bulk Announces New Charter for Capesize Star Beta and Agrees With Its Lenders on Loan Covenant Waivers
| Source: Star Bulk Carriers Corp.
ATHENS, GREECE--(Marketwire - February 12, 2009) - Star Bulk Carriers Corp. (the "Company" or
"Star Bulk") (NASDAQ : SBLK ), a global maritime transportation company
focusing on dry bulk cargoes, announced today that:
Star Beta
The Star Beta, a Capesize vessel of 174,691 dwt, built in 1993, has been
time chartered for a period of 13 to 15 months at a gross daily rate of
$32,500. The vessel is expected to be delivered to its new charterers
within February 2009.
Covenant Waivers
The Company has reached agreements in principle with its lenders to obtain
waivers for certain covenants including minimum asset coverage covenants
contained in its loan agreements. The related terms are described below.
With respect to the $120 million facility, the lender will waive the
loan-to-value ratio covenant through January 31, 2010. The Company will
provide a first preferred mortgage on the currently debt-free vessel Star
Alpha and pledge an account containing $6 million as further security for
this facility.
With respect to the $150 million facility, the lenders will waive the
security cover requirement through February 28, 2010, and the Minimum Asset
Coverage Ratio for the year 2010 will be reduced to 110% from 125%. The
Company will provide first preferred mortgages on the currently debt-free
vessels Star Kappa and Star Ypsilon and will pledge an account containing
$9 million as further security for this facility.
With respect to the $35 million facility, the lender will waive the
security cover requirement through February 28, 2010, and the Minimum Asset
Coverage Ratio for the year 2010 will be reduced to 110% from 125%. The
Company will pledge an account containing $5 million as further security
for this facility.
The interest spread for each of the above loans will be adjusted to 2% per
annum for the duration of the respective waiver period.
The above agreements require final approval by the credit committees of the
respective lenders.
The Company also announced that, under the terms of the above referenced
agreements, its cash dividends and its share repurchases are being
suspended.
Akis Tsirigakis, CEO of Star Bulk, commented: "We are pleased with the
successful outcome of our discussions with our lenders and the recent
significant fleet employment developments strengthening the position of the
Company in the current market environment. Our fleet's contracted
operating days coverage is now 93% in 2009 when taking into account time
charter and COA contracts, providing significant cash flow visibility. The
suspension of our dividend will reinforce our liquidity and balance sheet."
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne
transportation solutions in the dry bulk sector. Star Bulk's vessels
transport major bulks, which include iron ore, coal and grain and minor
bulks such as bauxite, fertilizers and steel products. Star Bulk was
incorporated in the Marshall Islands on December 13, 2006 and is
headquartered in Athens, Greece. Its common stock and warrants trade on the
Nasdaq Global Market under the symbols "SBLK" and "SBLKW" respectively.
Currently, Star Bulk has an operating fleet of twelve dry bulk carriers.
The total fleet consists of four Capesize, and eight Supramax dry bulk
vessels with an average age of approximately 9.7 years and a combined cargo
carrying capacity of 1,106,250 deadweight tons.
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," "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 Bulk's examination of historical operating trends, data
contained in their records and other data available from third parties.
Although Star Bulk believes 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 its control, Star Bulk cannot assure you that 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 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 Star Bulk's results to differ materially from those
described in the forward-looking statements can be found in Star Bulk's
Registration Statement on Form F-1/F-4, Annual Report on Form 20-F for the
year ended December 31, 2007 and reports on Form 6-K 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 Bulk disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.