Hellenic Carriers Units Signs New Construction Contracts

30th Jun 2010 10:05

LONDON (Dow Jones)--Hellenic Carriers Ltd (HCL.LN), an international provider of marine transportation services for dry bulk cargoes, said Wednesday that two of its newly formed subsidiaries have entered into shipbuilding contracts with Zhejiang Ouhua Shipbuilding Co Ltd of China for the construction of two 82,000 dwt Kamsarmax vessels. MAIN FACTS: -Each of the Vessels will cost $34.2 million in total, contract price of $34 million each plus $200,000 in respect of additions to the basic specification with delivery of the first vessel scheduled for January 2013 and the second vessel for March 2013. -In addition, the Shipyard has granted an option to be declared by 1 September 2010 for a third 82,000 dwt Kamsarmax vessel on the same terms as the Vessels and with delivery in May 2013. -Payment for the Vessels will be made in stages, with the initial installment amounting to 30% of the contract price due after signing and receipt of the relevant refund guarantees, the second 10% installment payable 3 months thereafter and the remaining 60% payable on delivery. -The pre-delivery installments will be funded from the Company's cash reserves. -The Company intends to secure 60 - 65% bank financing to be drawn upon delivery of the vessels and is already in discussions with banks that have expressed interest in providing financing. -Shares closed Tuesday at 69.50 pence. -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [email protected] (END) Dow Jones Newswires June 30, 2010 05:05 ET (09:05 GMT)