United States

Golden Ocean sells 6 vessels, boosts financial flexibility

Monday, 25 Sep 2017 02:30am EDT 

Sept 25 (Reuters) - Golden Ocean Group Ltd :Sale of six vessels and early delivery of newbuilding.Has entered into agreements to sell six ultramax vessels built at chengxi between 2015 and 2017 en bloc for $142.5 million to an unrelated third party.Net cash proceeds from sale after repayment of $39.2 million of associated debt will be slightly in excess of $100 million.All vessels are expected to be delivered to their new owner during q4 of 2017.Separately, company has agreed to take early delivery of Golden Nimbus, a capesize vessel under construction at new times shipbuilding.Company will make a final payment of $29.4 million for vessel at delivery and will draw $25 million from related bank financing in early October 2017, resulting in a net cash outlay of $4.4 million.Vessel will commence a time charter at a gross rate of $16,750 per day for a duration of between 14 and 18 months.Including this charter, company has taken advantage of recent market strength to fix five of 44 capesize vessels in its 2018 operating fleet on charters of one year.Sale of these vessels strengthens our commercial focus on capesize and panamax vessels, where we have critical mass and that we believe will provide greatest leverage to a recovery in dry bulk shipping market.Also increases our financial flexibility considerably as majority of gross proceeds will directly increase our cash balance.