Bruce Barnard, Special Correspondent | Jun 13, 2012 10:57AM EDT
Greece’s Box Ships Inc. has bought two post-Panamax container vessels from Orient Overseas Container Line for $62.3 million, which the NYSE-listed company will partly fund by issuing $40 million of stock.
The 1.333 million preferred shares are being acquired by Box Ships Chairman and Chief Executive Michael Bodouroglou.
Bodouroglou, who also heads dry bulk operator Paragon Shipping, said his investment “was necessitated by the very challenging capital market conditions and the need to consummate the acquisition within a certain period of time.”
“It is also a testament of my belief in this acquisition, the prospects of Box Ships and the containership sector in general.”
The balance of the purchase price will be funded by drawing down a $25 million senior secured credit facility.
Box Ships also announced a public offering of 700,000 preferred shares, together with warrants to purchase 700,000 common shares at any time until June 30, 2017, at $7.74 per share.
The 1995 and 1996-built ships, which each have a capacity of 5,344 20-foot-equivalent units, will be chartered by Hong Kong-based OOCL for three years at a net daily rate of $26,465.The charters are expected to generate $57 million of net revenue.
The two ships, to be delivered by July 14, will boost Box Ships' fleet to nine vessels with a total capacity of 43,925 TEUs.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
