OLDENDORFF CARRIERS completes finance program for its Newbuildings
Last year, we successfully completed the financing program earmarked for our newbuildings. In diversifying our sources of funding, we entered the US Private Placement ("USPP") market and secured tenors of up to 30 years in our second bond issuance, which was recently awarded the Private Placement "Deal of the Year" by Marine Money. The favourable placement is testimony to OLDENDORFF CARRIERS strong balance sheet and the bond issuance provides an excellent new platform of finance for the company.
Last year, the company also secured attractive long term commercial loans and export credit financing from 6 major international banks in Europe, Japan and the United States.
However, cash from operations will remain the main source of funding for our investments, resulting in a low leverage. No further loans will be needed to finance our newbuilding program. OLDENDORFF CARRIERS expects its 2015 net profit to exceed last year's satisfactory result, further strengthening the company's cash reserves. In terms of cargo coverage, the company is still "short" for the coming years, i.e. has more contract cargoes than owned or fixed rate vessels in its books.
A total of 17 bulkers with aggregate sales proceeds of about US$ 530 million net were sold in 2013 and 2014, including five Newcastlemaxes, two Capes, one Panamax, one Ultramax, two Supramaxes and six OHBS Handies, contributing to the funding of the company’s newbuilding program.