Greek bulker owner Star Bulk Carriers outlined a number of possibilities but admitted its seeking “broad discretion” over the use of funds from the sale of notes if it decides to pull the trigger.
Star Bulk Carriers said “We intend to use the net proceeds from our sale of notes in this offering for general corporate purposes. These general corporate purposes may include, among other things, additions to our working capital, capital expenditures, research and development, repayment of debt, repurchases of stock, or the financing of possible acquisitions and investments.”
Star Bulk Carriers may be in need of ammunition for another expansion campaign that would cement its position as the largest US-listed bulker owner in the world. Star Bulk Carriers is based in Athens. When it completes the acquisition of vessels from Greek compatriot Excel Maritime Carriers and takeover of tonnage controlled by Oceanbulk the operator will boast a fleet of more than 100 bulkers. The total includes 35 newbuildings that carry a combined price tag of approximately $1.5bn. Since the orderbook is nearly funded some forecasters think the owner plans to reward shareholders by buying back stock.
Star Bulk Carriers argued that the value of newbuildings, resales and secondhand tonnage in today’s market “remains low relative to long-term historical averages”, which is why it believes now is the right time to purchase more assets.
Star Bulk also pointed out that, unlike some other segments of the shipping industry, the drybulk sector is “highly fragmented”. Today it claims there are more than 10,000 bulkers on the water and approximately 2,000 different owners. The largest 50 owners account for approximately 37% of the dry bulk fleet in terms of dwt carrying capacity.
Dry Bulk Shipping News - Shipbroker Notes