Cyprus-based dry bulk shipping company Castor Maritime has taken delivery of its recently purchased secondhand Panamax dry bulk carrier and subsequently signed a new charter contract.
Pursuant to a memorandum of agreement from July 2019, the company completed the acquisition of the 2001-built vessel Magic Sun for a purchase price of USD 6.7 million.
The move was financed with cash on hand and the proceeds from a USD 5 million unsecured term loan agreement entered into between the company and an entity controlled by Petros Panagiotidis, Castor’s Chairman, Chief Executive Officer and Chief Financial Officer, which closed on August 30, 2019.
The loan bears an annual fixed interest rate of 6% and has a bullet repayment at maturity, which is eighteen months following the drawdown date, the company noted.
In connection with the acquisition, on August 30, 2019, Castor Maritime entered into a new time charter agreement with Oldendorff Carriers at a daily hire rate of USD 12,000.
The charter deal has an expected term of eight to twelve months and was expected to commence on or around September 7, 2019. With this new employment, the company’s gross revenue is expected to increase by USD 2.9 million for the minimum scheduled period of the time charter and could reach around USD 4.4 million should employment be extended to its maximum period.
“Consistent with our growth-oriented strategy, in a short period of time, we have doubled the size of our fleet with the target of increasing annual cash flows and shareholder value,” Petros Panagiotidis, Chief Executive Officer and Chief Financial Officer of Castor, said.