Boston, MA 03/14/2014 (wallstreetpr) – NewLead Holdings Ltd (NASDAQ:NEWL) has announced it has come to an agreement for the acquisition of two eco-type 31,800 dwt Handysize bulk carriers built in 2012 at a cost price of $37 million. The holdings company expects the two vessels to be delivered between June and July, of the current fiscal year. The two eco type vessels will lead to five, the total number of dry bulk vessels that NewLead holdings owns.
The financing of the two vessels will be done through a combination of proceeds from recent preferred share issuance and a 75% debt financing. NewLead Holdings Ltd (NASDAQ:NEWL) has already paid a deposit of $1.85 million for the acquisition price with the remaining $7.4 million expected to be paid to be paid in installment once the two vessels are delivered.
NewLead Holdings chief executive officer was quoted as saying that the two devices had been bought at a competitive price with an upside in the market value, 23 year employment lifetime as well as unlimited trading flexibility. The two devices are expected to have a projected EBITDA and OPEX of $4million and $1.73 million respectively
NewLead Holdings announces issuance of $25 million Perpetual Preferred equity.
NewLead Holdings Ltd (NASDAQ:NEWL) has confirmed issuance of $25 million in perpetual Series A preferred shares to an institutional investor under a share subscription agreement. NewLead Holdings will be able to redeem the preferred shares with the purchaser also having an option of converting them into common shares whenever deemed necessary.
The closing of the transactions saw NewLead Holdings receive partial consideration of $2.5 million, the remaining $22.5 million will be paid subject to conditions per the agreement, in nine consecutive equal monthly installment after 90 days of closing.
NewLead Holdings Ltd (NASDAQ:NEWL) intends to use the $25 million proceed from the transaction for the expansion of its fleet. Partial amount of the $25 million issuance and 75% of debt refinancing will be used for the purchase of the two proposed Eco type vessels.
Michael Zolotas Chairman and Chief executive officer was quoted as saying “We are delighted to close the $25.0 million new equity financing. We continue to transform our Company with a focus towards building scale”
