SOURCE: OceanFreight Inc.

September 19, 2007 07:00 ET

OceanFreight Inc. Grows Fleet to Nine Vessels With the Acquisition of a Panamax Bulk Carrier and Enters Into a $325 Million Credit Facility With Nordea Bank

ATHENS, GREECE--(Marketwire - September 19, 2007) - OceanFreight Inc. (NASDAQ: OCNF), a NASDAQ listed bulk shipping company, announced today that it has entered into an agreement to acquire a ninth vessel for its fleet, a Panamax drybulk carrier to be renamed Augusta, that will immediately commence a one-year time charter upon its delivery to the Company in early January 2008. The purchase price of this vessel is $61.6 Million. The Company also announced that it has entered into a new $325 million loan facility with Nordea Bank.

Bob Cowen, OceanFreight's Chairman and CEO, said, "The Nordea $325 million credit agreement, which is comprised of a $200 million revolving credit facility and a $125 million delayed draw term loan, provides us with the capital and financial flexibility to grow our company. Nordea is a leader in ship finance and we are pleased that they have provided us with this highly attractive corporate facility. Our first use of this expanded credit availability is to refinance our existing loan and add a ninth Panamax dry bulk vessel to our fleet. The Augusta, built in 1996, will commence a one-year charter at the net daily rate of $57,000 when she is delivered in January of 2008 and will be highly accretive to our cash flow."

With the addition of this new vessel, the Company's nine vessel fleet will be comprised of one Capesize and eight Panamax bulk carriers aggregating approximately 742,000 deadweight tons. Three of the nine vessels in the Company's fleet were delivered during the first week of June, four were delivered between July and August, and the eighth vessel is expected to be delivered in November of this year.

About OceanFreight Inc.

OceanFreight Inc. was incorporated on September 11, 2006 under the laws of the Republic of the Marshall Islands. The Company was formed to acquire an initial fleet of seven secondhand drybulk carriers. The Company maintains its headquarters in Athens, Greece, and will also maintain an office in New York.

On April 30, 2007, OceanFreight closed its initial public offering of 12,362,500 common shares, at a price of $19.00 per share. The Company's total outstanding equity also includes 2,060,000 subordinated shares.

OceanFreight's common shares trade on the NASDAQ Global Market under the symbol "OCNF."

Visit our website at www.oceanfreightinc.com

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although OceanFreight Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, OceanFreight Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels to us or delay in taking delivery of one or more vessels, default by one or more charterers of our vessels, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in OceanFreight Inc.'s operating expenses, length and number of off-hire periods and dependence on third-party managers; dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists.

Risks and uncertainties are further discussed in documents filed by OceanFreight Inc. with the U.S. Securities and Exchange Commission.

Contact Information

  • Company Contact:
    James Christodoulou
    Chief Financial Officer
    Tel. 212-488-5050
    E-mail: james@oceanfreightinc.com

    Investor Relations / Financial Media:
    Capital Link - New York