Castor Maritime Buys Korean Built Panamax

Castor Maritime, a global shipping company specializing in the ownership of dry-bulk vessels, announced that through one of its wholly-owned subsidiaries, took delivery of the M/V Magic Sun, a 2001 Korean built Panamax dry bulk carrier, from an unaffiliated seller.

The Cyprus-based company said in a press release that the vessel is expected to commence its initial charter with Oldendorff Carriers GMBH & Co KG on or around September 7, 2019.

The Magic Sun Initial Charter was fixed at a daily hire rate of $12,000 and has an expected term of minimum eight months up to maximum 12 months. The M/V Magic Sun acquisition was financed using Castor’s existing cash reserves and debt financing.

In connection with the M/V Magic Sun acquisition, on August 30, 2019, Castor entered into an unsecured $5.0 million term loan with Thalassa Investment Co., an entity controlled by Petros Panagiotidis, Castor’s Chairman, Chief Executive Officer and Chief Financial Officer.

The loan bears an annual fixed interest rate of 6% and has a bullet repayment at maturity, which is 18 months from the drawdown date, being September 3, 2019.  

Petros Panagiotidis, Chief Executive Officer and Chief Financial Officer of Castor said: "We have started validating our fleet growth strategy by completing, within a very short time, the acquisition of our second fleet vessel, the M/V Magic Sun, which was delivered to us on September 5, 2019. We expect that this acquisition will be accretive to both our earnings and cash flows."