SOURCE: Star Bulk Carriers Corp.

Star Bulk Carriers Corp.

February 22, 2010 08:45 ET

Star Bulk Acquires a Capesize Bulk Carrier to Replace the Recently Sold Capesize Star Alpha

ATHENS, GREECE--(Marketwire - February 22, 2010) -  Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK) today announced that it has entered into a definitive agreement to acquire a Capesize bulk carrier of approximately 171,000 dwt, built in 2000 in Japan, for approximately $42.5 million from a third party. The vessel will be financed through a combination of company cash and bank debt.

The vessel, to be renamed the M/V Star Aurora, is currently expected to be delivered charter-free to Star Bulk within October/November 2010. Star Bulk intends to secure period time-charter employment for the vessel prior to its delivery to the Company.

The Company acquired the vessel to replace the Capesize Star Alpha which was sold and delivered to its buyers in the fourth quarter of 2009. This acquisition will bring Star Bulk's fleet to twelve vessels of approximately 1.1 million dwt and an average age of approximately 10.2 years.

Akis Tsirigakis, President and CEO of Star Bulk, commented: "We are pleased to acquire a younger capsize vessel of quality to replace the older one sold. Currently, our fleet is contracted 92% for 2010 and 46% for 2011 operating days, amongst the highest contract coverage. We continue to focus on enhancing shareholder value supported by our strong balance sheet and liquidity."

About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Greece. Its common stock and warrants trade on the Nasdaq Global Market under the symbols "SBLK" and "SBLKW" respectively. Currently, Star Bulk has an operating fleet of eleven dry bulk carriers with definitive agreements to buy one as well as sell one of them. The fleet consists of three Capesize, and eight grab-fitted, self-discharging Supramax vessels with an average age of approximately 10.2 years and a combined cargo carrying capacity of 931,178 deadweight tons.

Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Company's management of historical operating trends, data contained in its records and other data available from third parties. Although the Company 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 the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company's 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 fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

Contact Information

  • Contacts :
    Company :
    George Syllantavos
    CFO
    Star Bulk Carriers Corp.
    c/o Star Bulk Management Inc.
    7 Fragoklisias Str.
    Maroussi 15125
    Athens, Greece
    www.starbulk.com

    Investor Relations / Financial Media:
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue, Suite 1536
    New York, NY 10169
    Tel. (212) 661-7566
    E-mail:starbulk@capitallink.com
    www.capitallink.com