NEWPORT, R.I., Jan. 31, 2017 /PRNewswire/ -- Pangaea Logistics
Solutions, Ltd. (NASDAQ: PANL) ("the Company"), announced that it
has taken delivery of two ultramax ice-class 1C dry bulk carriers
from Oshima Shipyard in Japan. The ships were ordered in 2013
by Pangaea's 50% owned joint venture company, Nordic Bulk Ventures
Holding, Ltd. ("NBVH"). Further, the Company has
purchased its joint venture partner's 50% interest in NBVH, which
will give the Company full control of both new ships.
"The delivery of Bulk Destiny and Bulk Endurance completes our
current newbuilding program of six ice class bulk carriers," said
Edward Coll, Chairman and Chief
Executive Officer of Pangaea Logistics Solutions Ltd. "The
new ships were immediately employed to service our cargo portfolio
and, with their ice class designations, nicely complement our
existing ice class fleet of eight vessels, bringing our ice class
fleet to ten ships. Oshima-built ships are of the highest
quality in design and construction and we are excited about the
value they will add to our business for years to come."
The Company has financed the vessels under separate agreements.
The Bulk Destiny was financed under a sale-leaseback transaction
for a total of $21 million, inclusive
of the purchase price at the end of the seven year lease term. The
Company obtained commercial financing with a European bank for the
Bulk Endurance, which is apportioned into a senior debt tranche of
$16 million and a junior debt tranche
of $3.5 million.
Additional Business Updates
The Company announced
that the counterparty to a long-term contract of affreightment
("COA"), a major alumina producer that filed for bankruptcy early
in 2016, was acquired by a new entity that has assumed the COA
under its existing terms. This contract employs three company
vessels in a shuttle service, and extends through 2025.
The Company also recently loaded its one-millionth ton of cargo
under a logistics-based COA to provide for the transportation of
approximately 3.5 million tons of construction material to a major
port on the Unites States' east coast. This COA is continuously
serviced by four ultramax vessels.
Mr. Coll added, "In a tumultuous time for long-term commitment
in the dry bulk business, we have secured new tonnage for our fleet
and attractive financing packages with world class lenders.
Our cargo customers recognize and appreciate the efforts we make to
expand our services and their markets. We look forward to
working more with our new partners as we grow our business."
About Pangaea Logistics Solutions, Ltd.
Pangaea
Logistics Solutions Ltd. provides logistics and ocean shipping
services to a broad base of industrial customers who require the
transportation of a wide variety of dry bulk cargoes, including
grains, pig iron, hot briquetted iron, bauxite, alumina, cement
clinker, dolomite, and limestone. The Company addresses the
transportation needs of its customers with a comprehensive set of
services and activities, including cargo loading, cargo discharge,
vessel chartering, and voyage planning. Learn more at
www.pangaeals.com.
CONTACT:
INVESTOR RELATIONS:
Prosek
Partners
Thomas Rozycki
Managing Director
(212) 279-3115 x208
trozycki@prosek.com
Sean Silva
Account Supervisor
(212) 279-3115 x122
ssilva@prosek.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pangaea-logistics-solutions-ltd-announces-delivery-of-two-ultramax-newbuildings-and-other-business-developments-300399816.html
SOURCE Pangaea Logistics Solutions Ltd.