Castor Maritime Inc. Announces $55.0 Million Debt Financing and New Charter Agreement
LIMASSOL, Cyprus, Jan. 18, 2022 (GLOBE NEWSWIRE) — Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a diversified global shipping company, announces the closing and withdrawal of a $55.0 million senior term loan facility with a European bank (the “$55.0 million financing”), through and guaranteed by five of its vessel-owning subsidiaries dry bulk and guaranteed by the Company. The Company intends to use the net proceeds of the $55.0 million financing for general corporate purposes, including to support the Company’s growth plans.
The $55.0 million financing has a term of five years and bears interest at the adj. SOFR increased by 3.15% per year.
Mr. Petros Panagiotidis, Managing Director of Castor, said:
“We are pleased to announce the closing of this new debt financing, our largest to date, and the start of a new relationship with a leading European financial institution.
We believe this new debt financing improves our capital structure and strengthens our ability to pursue our strategic goals and growth objectives.
New Charter Agreement
the M/V Magic Callisto, a Panamax dry bulk carrier built in 2012, was secured on a time charter contract at a gross daily charter rate equal to 101% of the Baltic Panamax Index 4TC route average1. The charter started on January 12, 2022 and has a minimum duration of nine months and a maximum duration of approximately twelve months (+/- 15 days) at the choice of the charterer.
The reference vessel used in the Baltic Panamax Index 4TC route average calculation is a non-scrubber vessel of 74,000 mt dwt (Panamax) with specific age, speed – consumption and design characteristics.
About Castor Maritime Inc.
Castor Maritime Inc. is an international provider of maritime transportation services through its ownership of ocean-going cargo vessels.
Castor has a fleet of 29 vessels, with a total capacity of 2.5 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 12 Panamax dry bulk vessels, as well as 1 Aframax, 6 Aframax/LR2 and 2 Handysize tankers.
For more information, please visit the company’s website at www.castormaritime.com. Information on our website is not part of this press release.
Caution Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. We intend that these forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements regarding future plans, objectives, goals, strategies, events or performance, as well as underlying assumptions and other statements, that are other than statements of historical fact. We include this disclaimer as part of this safe harbor legislation. The words “believe”, “anticipate”, “intend”, “estimate”, “plan”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending” and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are based on various assumptions, many of which are based, in turn, on other assumptions, including, without limitation, our management’s review of operating trends history, data in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to important uncertainties and contingencies which are difficult or impossible to predict and which are beyond our control, we cannot assure you that we will make or accomplish these forward-looking statements. , including such expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to these important factors, other important factors that we believe could cause actual results to differ materially from those discussed in the forward-looking statements include general dry bulk shipping and ship- tanks, including fluctuations in charter rates and vessel values. , the strength of global economies, our future financial condition or results of operations and our future revenues and expenses, our continued ability to enter into time or voyage charters with existing and new customers, and to recharter our vessels to the expiration of existing charters, stability of Europe and the Euro, fluctuations in interest rates and exchange rates, changes in demand in the dry bulk and ship transport sectors- tankers, including the market for our vessels, the evolution of our operating expenses, including bunker prices, berthage and insurance costs, our ability to finance future capital expenditures and investments in the acquisition and refurbishment of our vessels, our business strategy and other plans and objectives for future operations, our expectations regarding the availability of vessel acquisitions and our ability to complete transactions acquisition actions as planned, our ability to realize the expected benefits of our vessel acquisitions, potential liability from pending acquisitions or future litigation, and potential costs due to environmental damage and vessel strikes, exposure or the potential loss of an investment in derivative instruments (if any), changes in supply and demand in the dry bulk and tanker shipping industry, including the market for our vessels and the number of new buildings under construction, changes in shipping and other transportation, changes in government rules and regulations or actions taken by regulatory authorities, potential liability arising from pending or future litigation, general national and international political conditions, potential disruption shipping routes due to accidents or political events, our company corporate strategy and other plans and objectives for future operations, future sales of our securities in the public market, the impact of adverse weather conditions and natural disasters, the impacts of climate change and greenhouse gas restrictions greenhouse, the duration and severity of the COVID-19 outbreak, the impact of public health threats and outbreaks of other highly communicable diseases, the impact of the planned shutdown of LIBOR after 2021 on rates interest rates of our debt which refer to LIBOR, the availability of financing and refinancing and the growth of our business, vessel breakdowns and out-of-work events, exposure to or potential loss of an investment in derivative instruments, potential conflicts of interest involving our CEO, his family and other members of our senior management, and our ability to complete the acquisition transactions as planned. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information contained herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
For more information, please contact:
Castor Maritime Inc.
E-mail: [email protected]
E-mail: [email protected]