The cash portion of the Purchase Price will be financed through proceeds of a new seven-year capital lease of up to US$93.6 million with China Merchants Bank Leasing, and an additional tranche of US$15.0 million for financing of scrubbers, thus offering approximately US$9.0 million of additional liquidity for Star Bulk.
The vessel acquisition, which is expected to be consummated in June 2019, remains subject to the execution of definitive finance agreements and customary closing conditions. The technical management of the 11 vessels will remain with an entity affiliated with Technomar, while commercial management will be taken over by Star Bulk. As a result of the contemplated transaction, entities affiliated with Kelso are expected to own approximately 4.6% of the outstanding common shares of the company. After giving effect to the vessel acquisition, Star Bulk will have a fleet of 120 vessels on a fully delivered basis, aggregate 2 cargo-carrying capacity of approximately 13.1 million DWT and vessels with an average age of 7.8 years.
