Globus Maritime Limited Completes $25 Million Sale and Bareboat Charter Agreement for Bulk Carrier GLBS Magic

Globus Maritime Limited closed a $25 million sale and charter agreement for the bulk carrier “GLBS Magic.”

Quiver AI Summary

Globus Maritime Limited, a dry bulk shipping company, announced the completion of a $25 million sale and bareboat charter agreement for its bulk carrier "GLBS Magic" with a Japanese third party through its subsidiary, Paralus Shipholding S.A. The vessel, delivered on September 20, 2024, will be chartered back to Globus at fixed daily rates that increase over a ten-year period, along with a variable leasing fee. Globus retains options to repurchase the ship starting three years after the sale, culminating in a mandatory buyback obligation at the end of the charter period. The transaction closed on December 23, 2024, as part of the company’s strategy in the dry bulk sector, which includes a fleet of ten vessels.

Potential Positives

• The successful sale of the GLBS Magic for $25 million indicates the company's ability to capitalize on its assets effectively.
• The bareboat charter agreement allows the company to maintain operational control of the vessel while providing immediate liquidity.
• The structured lease terms allow for predictable cash flows over the duration of the charter, enhancing financial stability.
• The option to buy back the vessel at a set price after the third year could provide strategic flexibility for future operational decisions.

Potential Negatives

• The company is obligated to purchase the vessel back at a significant price of $15,400,500 after ten years, which could strain financial resources.
• The decision to sell and charter back the vessel may raise concerns about the company's long-term operational strategy and liquidity position.
• The variable lease payments contingent on Term SOFR plus a margin could lead to increased future costs, particularly in a rising interest rate environment.

FAQ

What is the recent transaction announced by Globus Maritime Limited?

Globus announced a $25 million sale and bareboat agreement for the bulk carrier “GLBS Magic” with a Japanese unrelated third party.

When was the GLBS Magic delivered?

The GLBS Magic was delivered from the Nantong Cosco Khi Ship Engineering shipyard on September 20, 2024.

What are the terms of the bareboat charter?

The charter includes fixed daily rates increasing over ten years and a variable amount tied to Term SOFR plus a margin.

What is the buyback option for Globus Maritime?

Globus has options to buy back the vessel after three years at specified prices, with an obligation to buy back by year ten.

How many vessels does Globus Maritime operate?

Globus operates a fleet of ten dry bulk vessels with a total carrying capacity of 734,249 deadweight tons as of December 30, 2024.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$GLBS Hedge Fund Activity

We have seen 3 institutional investors add shares of $GLBS stock to their portfolio, and 5 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• CITADEL ADVISORS LLC removed 16,088 shares (-11.3%) from their portfolio in Q3 2024
• TWO SIGMA SECURITIES, LLC added 13,574 shares (+inf%) to their portfolio in Q3 2024
• EWA, LLC removed 11,236 shares (-100.0%) from their portfolio in Q3 2024
• RENAISSANCE TECHNOLOGIES LLC removed 10,199 shares (-100.0%) from their portfolio in Q3 2024
• SIMPLEX TRADING, LLC added 6,081 shares (+125.3%) to their portfolio in Q3 2024
• SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 4,557 shares (-6.6%) from their portfolio in Q3 2024
• JPMORGAN CHASE & CO removed 455 shares (-58.2%) from their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

GLYFADA, Greece, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Globus Maritime Limited (“Globus” or the “Company”) (NASDAQ: GLBS), a dry bulk shipping company, announced today that it has closed a $25 million sale and bareboat agreement through its wholly owned subsidiary, Paralus Shipholding S.A., with an unrelated Japanese third party, with respect to the approximately 64,000 dwt bulk carrier “GLBS Magic” which was delivered from its builder, the Nantong Cosco Khi Ship Engineering Co., Ltd. shipyard in China on September 20, 2024. The Company has sold the GLBS Magic to an unrelated third party for $25 million and has bareboat chartered back the vessel for (i) a fixed amount equal to $2,250 per day for the first three years from the delivery date, $2,550 per day for the next two years, $2,850 per day for the three years following, and $2,950 per day for the final two years plus (ii) a variable amount priced at Term SOFR plus a 2.1% margin of the outstanding lease obligation. As part of this transaction, the Company has continuous options to buy back the vessel following the third anniversary of its delivery to the purchaser, at purchase prices stipulated in the bareboat charter depending on when the option is exercised. At the end of the ten-year period, the Company has an obligation to buy back the vessel at a purchase price of $15,400,500, if not purchased earlier. The sale and bareboat charter back transaction closed on December 23, 2024. The bareboat charter contains certain covenants and agreements customary for financing agreements of this type.

About Globus Maritime Limited

Globus is an integrated dry bulk shipping company that provides marine transportation services worldwide. The Company’s operating fleet consists of ten dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally, with a total carrying capacity of 734,249 dead weight tons and a weighted average age of 7.8 years as at December 30, 2024.

Safe Harbor Statement

This communication contains “forward-looking statements” as defined under U.S. federal securities laws. Forward-looking statements provide the Company’s current expectations or forecasts of future events. Forward-looking statements include statements about the Company’s expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts or that are not present facts or conditions. Words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “will” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The Company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons specifically as described in the Company’s filings with the Securities and Exchange Commission. Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication. Globus undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this communication or to reflect the occurrence of unanticipated events. You should, however, review the factors and risks Globus describes in the reports it files from time to time with the Securities and Exchange Commission.

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