NewLead Holdings Ltd. Announces Delivery of the Second Eco-Type Handysize Vessel
9:00a ET July 29, 2014 (PR NewsWire) Print
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that the "Newlead Venetico," a 2012-built dry-bulk eco-type Handysize vessel of 32,500 dwt, was delivered to NewLead's fleet on July 25, 2014.
The Newlead Venetico is trading on the spot market and is expected to generate approximately $1.7 million EBITDA per year assuming $1.73 million yearly OPEX.
The Newlead Venetico is the second of the two eco-type vessels, the Company agreed to acquire in March 2014 for a total acquisition price of $37.0 million, $18.5 million each, that have each now been delivered to NewLead's fleet. The first vessel, the Newlead Albion, was delivered to NewLead's fleet on May 19, 2014, as previously announced.
The Company financed the Newlead Venetico through a combination of cash and external financing. Specifically, in July 2014, the Company paid a deposit of $925,000 in cash, and the remaining balance was paid through a combination of cash, $3.7 million paid by NewLead, and 75% financing, $13.875 million, in a transaction arranged by Pareto Project Finance AS and supported by institutional investors.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "We are pleased to announce the delivery of the NewLead Venetico as scheduled. The Company's fleet is being optimized with fuel efficient vessels with an anticipated longer lifetime available for employment. The average fleet age is at its lowest level since the successful completion of the Company's restructuring in 2013. NewLead expects to take delivery of a third eco-type, Handysize dry-bulk vessel, 2013 built by the end of August 2014."
Michael Zolotas, added, "We are transforming the Company while delivering on our commitments."
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping, logistics and commodity company. NewLead owns four dry-bulk vessels, two Panamax and two Handysize vessels, and manages three third party tanker vessels, two small bitumen tanker vessels and one Handysize MR product tanker. The Company expects to take delivery of one modern eco-type dry-bulk Handysize vessels by the end of August 2014. The Company has also signed a term sheet for 75% financing to acquire two dry-bulk Panamax vessels. Upon completion of the above acquisitions and together with the vessels under management. NewLead is expected to have a fleet of ten vessels, seven owned and three vessels under management. Furthermore, the Company owns a wash plant and a mine in Kentucky, USA and has been granted access to develop and mine another mine that includes a CSX rail load facility, the Andy Rail Terminal, in Kentucky, USA. NewLead's common shares are traded under the symbol "NEWL" on the over-the-counter market. To learn more about NewLead Holdings Ltd., please visit the new website at www.newleadholdings.com.
