GOGL - Investment in Knightsbridge Tankers Limited through sale of vessel
30346 fcras 16/6 2010 04:36
Published: 14:26 CEST 15-06-2010 /HUGIN /Source: Golden Ocean Group /XOSL: TICKER GOGL /ISIN: BMG4032A1045
GOGL - Investment in Knightsbridge Tankers Limited through sale of vessel
Golden Ocean Group Limited ("Golden Ocean" or the "Company") is pleased to advise that the Company has agreed with Knightsbridge Tankers Limited ("Knightsbridge") to sell the capesize vessel "Golden Future" at a sales price of $72 million. The sales proceeds will be used to pay down debt on the asset and the balance, $25 million, to acquire a restricted number of common shares in Knightsbridge.
The Board of Golden Ocean is pleased with its continued commercial relationship with Knightsbridge and hopes to add value to their presence within the dry bulk segment.
The Investment in Knightsbridge is of long term nature. The Board sees the investment as a strategic holding which gives Golden Ocean the opportunity to, together with Knightsbridge, develop new dry bulk business based on mainly yield driven investment criteria. Such a position creates an additional flexibility for Golden Ocean and increases the possibilities to benefit from different prizing in the asset market, the public market and the yield sequrity market.
The prizing of the Knightsbridge stock including the direct yield and the prospects for a growing dividend further supports the investment.
Hamilton, Bermuda
June 15, 2010
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Golden Ocean Group (GOGL) / Website:
http://www.goldenocean.no/
Knightsbridge Tankers (VLCCF) / Website:
http://www.knightsbridgetankers.com/
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16/6 2010 04:40 fcras 0
30347 VLCCF - Acquisition of Capesize Drybulk Vessel
Press release from Knightsbridge Tankers Ltd. 15.06.2010
Knightsbridge Tankers Limited (the "Company" or "Knightsbridge") (Nasdaq: VLCCF) is pleased to announce that it has agreed to acquire the Capesize vessel "Golden Future" from Golden Ocean Group Limited ("Golden Ocean"), at a purchase price of $72 million. The Golden Future was built at the Zhoushan Jinhaiwan Shipyard Co., Ltd. and completed in February, 2010. The vessel is employed on a time charter with a minimum term of 35 months from February 2010 at a gross rate of $31,500 per day. The Company expects to take delivery of the vessel in June 2010. The agreement with Golden Ocean is subject to the consent of Knightsbridge's existing financing banks.
Knightsbridge will pay $25 million of the purchase price of the Golden Future by issuing to Golden Ocean 1,464,515 restricted common shares. The Company intends to finance the remaining portion of the purchase price through a senior secured credit facility, but will continue to evaluate other financing alternatives.
The Golden Future will be the third Capesize vessel in the Knigtsbridge fleet, and Golden Ocean is acting as the commercial manager for all the three vessels. The Knightsbridge Board welcomes Golden Ocean as a shareholder in the Company and feels this position further aligns the interest of the two companies.
The combination of the purchase price, the financing and the attached charter creates a solid basis for dividends in Knightsbridge going forward.
June 15, 2010
The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda
http://www.knightsbridgetankers.com/IR/press_releases/1424083.shtml
