Star Bulk to Buy 16 Vessels for $470.5M, Boosting Fleet to 157 Ships
Star Bulk Carriers agreed to buy 16 vessels from Diana Shipping for $470.5 million, including one Newcastlemax, six Capesize, seven Ultramax and two Supramax vessels totaling 1.8 million dwt. The deal would expand Star Bulk’s fleet to 157 ships with 15.9 million dwt financed by cash and debt.
1. Transaction Details
Star Bulk Carriers has entered a conditional sale and purchase agreement to acquire 16 vessels from Diana Shipping for $470.5 million in cash, contingent on Diana’s successful takeover of Genco. The shipment comprises one Newcastlemax, six Capesize, seven Ultramax and two Supramax vessels.
2. Vessel Portfolio and Capacity
The acquired fleet adds 1.8 million dwt at an average age of 11.4 years, raising Star Bulk’s fully delivered fleet to 157 vessels with a combined 15.9 million dwt and average age of 12.0 years.
3. Funding Structure
Star Bulk intends to fund the transaction using $501.9 million in existing cash, reserves from prior vessel sales and new senior secured debt, while retaining access to $110 million of undrawn revolving credit.
4. Strategic Implications
Management expects the acquisition to drive incremental TCE revenue, EBITDA and operating cash flow, supporting dividend growth and deleveraging efforts while maintaining balance sheet strength and low leverage.