NEWL News - Too Late?: NewLead Holdings Ltd. Announces Delivery of the Second Eco-Type Handysize Vessel 7/29/14
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company"
announced today that the "Newlead Venetico," a 2012-built dry-bulk eco-type Handysize vessel of 32,500 dwt, was delivered to NewLead's fleet on July 25, 2014.
The Newlead Venetico is trading on the spot market and is expected to generate approximately $1.7 million EBITDA per year assuming $1.73 million yearly OPEX.
The Newlead Venetico is the second of the two eco-type vessels, the Company agreed to acquire in March 2014 for a total acquisition price of $37.0 million, $18.5 million each, that have each now been delivered to NewLead's fleet. The first vessel, the Newlead Albion, was delivered to NewLead's fleet on May 19, 2014, as previously announced.
The Company financed the Newlead Venetico through a combination of cash and external financing. Specifically, in July 2014, the Company paid a deposit of $925,000 in cash, and the remaining balance was paid through a combination of cash, $3.7 million paid by NewLead, and 75% financing, $13.875 million, in a transaction arranged by Pareto Project Finance AS and supported by institutional investors.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "We are pleased to announce the delivery of the NewLead Venetico as scheduled. The Company's fleet is being optimized with fuel efficient vessels with an anticipated longer lifetime available for employment. The average fleet age is at its lowest level since the successful completion of the Company's restructuring in 2013. NewLead expects to take delivery of a third eco-type, Handysize dry-bulk vessel, 2013 built by the end of August 2014."
Michael Zolotas, added, "We are transforming the Company while delivering on our commitments."
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company"
announced today that the "Newlead Venetico," a 2012-built dry-bulk eco-type Handysize vessel of 32,500 dwt, was delivered to NewLead's fleet on July 25, 2014. The Newlead Venetico is trading on the spot market and is expected to generate approximately $1.7 million EBITDA per year assuming $1.73 million yearly OPEX.
The Newlead Venetico is the second of the two eco-type vessels, the Company agreed to acquire in March 2014 for a total acquisition price of $37.0 million, $18.5 million each, that have each now been delivered to NewLead's fleet. The first vessel, the Newlead Albion, was delivered to NewLead's fleet on May 19, 2014, as previously announced.
The Company financed the Newlead Venetico through a combination of cash and external financing. Specifically, in July 2014, the Company paid a deposit of $925,000 in cash, and the remaining balance was paid through a combination of cash, $3.7 million paid by NewLead, and 75% financing, $13.875 million, in a transaction arranged by Pareto Project Finance AS and supported by institutional investors.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "We are pleased to announce the delivery of the NewLead Venetico as scheduled. The Company's fleet is being optimized with fuel efficient vessels with an anticipated longer lifetime available for employment. The average fleet age is at its lowest level since the successful completion of the Company's restructuring in 2013. NewLead expects to take delivery of a third eco-type, Handysize dry-bulk vessel, 2013 built by the end of August 2014."
Michael Zolotas, added, "We are transforming the Company while delivering on our commitments."
