Dallas, Texas 05/27/2014 (FINANCIALSTRENDS) – NewLead Holdings Ltd (NASDAQ:NEWL) has now announced the delivery of 1 eco-type Handysize vessel. The company announced that “Newlead Albion”, the 2012-built and dry-bulk eco-type Handy- size vessel of 32,318-dwt, was delivered to the company’s fleet on Monday, 19 May 2014, said the company in its press release. Its Newlead Albion is now trading on the spot-market & is expected to generate $2.0M EBITDA/ year assuming $1.73M of yearly OPEX. The company’s Newlead Albion is 1 of the 2 eco-type vessels that it agreed to buy in March 2014, as had been previously announced, for the total acquisition-price of $37.0M at $18.5 million each.
The Market Value
Today, market value of the vessels is estimated to be around $20.25M each. The 2nd vessel is slated for delivery to the company’s fleet, as slated, in July 2014.NewLead Holdings Ltd (NASDAQ:NEWL) financed this Newlead Albion via the combination of cash & external financing. In March 2014, NEWL paid the deposit of $1.85M in cash, and the remainder balance was paid via a combination of cash & 75% financing in the transaction that was arranged by the Pareto Project Finance AS and was supported by the strong institutional investors.
The company’s Chairman and Chief Executive Officer, Michael Zolotas said that they are very pleased to announce delivery of- Newlead Albion, the 1st vessel that is to be added to its fleet after successful restructuring. In order to receive the delivery, they had secured financing via the leading shipping & financial institution, demonstrating 3rd -party belief in transformation of the company. Michael Zolotas also said that they are modernizing the fleet with different fuel efficient vessels and the fleet age is also being optimized. The employment lifetime is also substantially longer. The company now expects to have 3 new modern Handy- size vessels added to the fleet by August 2014-end.