Golden Ocean Group Limited ("Golden Ocean") is pleased to advise that the Company has acquired two newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea and two newbuilding contracts at Zhoushan Jinhaiwan Shipyardin China. The vessels of 170,000 dwt and 176.000 dwt respectively will be delivered between December 2008 and October 2009.
The total purchase price for the four units is $296 million.
Given the continuous positive outlook for the global steel production and the age profile of the existing capesize fleet, the management has a positive market view for this sector going forward. The Board of Golden Ocean finds the combination of price and time of delivery attractive, and an additional step in its ambitious growth strategy.
The Company has been granted the option for an additional two vessels from each yard, and these vessels can be delivered within first half of 2010.
The financing of the newbuildings will be accomplished through a combination of bank debt and liquidity generated from Golden Ocean. In addition sale and lease back structures will be considered.
Given the firm prices for newbuildings in today's market, the Board of Golden Ocean see that the new signed deals based on the attractive contract prices and the good delivery positions will create additional value for the shareholders in Golden Ocean.