NEW YORK, Dec. 2, 2013 /PRNewswire/ -- Baltic Trading Limited (NYSE: BALT) announced today that it has taken delivery of the Baltic Tiger, a 179,185 dwt Capesize vessel. The Baltic Tiger is the first of two Capesize vessels to be delivered to the Company under Baltic Trading's agreements previously announced on November 5, 2013.
The Baltic Tiger delivered to its charterer, Swissmarine Services S.A., on November 29, 2013 to commence a spot market-related time charter for 10.5 to 13.5 months. The rate for the spot market-related time charter, which is subject to the completion of definitive documentation, is based on 102.75% of the average of the daily rates of the Baltic Capesize Index (BCI) published by the Baltic Exchange, as reflected in daily reports. Hire will be paid every 15 days in arrears, net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. Baltic Trading will not be responsible for voyage expenses, including fuel.
The Company used available cash to pay the remaining balance of approximately $40.4 million for the Baltic Tiger and intends to refinance part of the vessel's purchase price with proceeds from a credit facility. The Company has received a commitment for a $44 million facility with a global lending institution for the financing of the two Capesize vessels it has agreed to acquire, the Baltic Tiger and the Baltic Lion. Under the terms of the six-year facility, amounts borrowed are to bear interest at LIBOR plus a margin of 3.35%. The credit facility is to be repaid in 24 quarterly repayment installments of $687,500, the first of which is payable in March 2014, and a balloon payment of approximately $27.5 million payable concurrently with the last repayment installment.
About Baltic Trading LimitedBaltic Trading Limited is a drybulk company focused on the spot charter market. Baltic Trading transports iron ore, coal, grain, steel products and other drybulk cargoes along global shipping routes. Baltic Trading's current fleet consists of three Capesize, four Supramax and five Handysize vessels with an aggregate carrying capacity of approximately 915,000 dwt. After the expected delivery of the two committed Ultramax newbuildings and one remaining Capesize vessel that Baltic Trading has agreed to acquire, Baltic Trading will own 15 drybulk vessels, consisting of four Capesize, two Ultramax, four Supramax and five Handysize vessels with a total carrying capacity of approximately 1,223,000 dwt.