April 26, 2010
Paragon orders bulker quartet from China
Athens-headquartered dry bulk specialist Paragon Shipping Inc. (NYSE:PRGN)reports that it has entered into shipbuilding contracts with a Chinese shipyard for the construction of two 37,200 dwt Handysize dry bulk vessels and two 82,000 dwt Kamsarmax dry bulk vessels, each approximately 82,000 dwt, for an aggregate purchase price of approximately $111.5 million.
Delivery of the Handysize ships in the fourth quarter of 2011 and the Kamsarmax ships in the second and third quarters of 2012. Following the delivery of these four vessels, the company's fleet will expand to 16 vessels with an aggregate carrying capacity of approximately 1,000,000 dwt.
Paragon has options to build an additional two Handysize and two Kamsarmax drybulk vessels with expected deliveries in the third and fourth quarters of 2012, respectively.
Chairman and CEO Michael Bodouroglou commented: "We believe the order will provide our fleet with greater flexibility by expanding the sectors in which we operate to the Handysize and Kamsarmax classes. Furthermore, we believe the newbuildings will be constructed with such specifications and equipment that will provide our charterers with greater operational capabilities."
Mr. Bodouroglou concluded, "While the newbuildings will grow our fleet by approximately 33%, we will continue to monitor the market for other high-quality secondhand and newbuilding vessels that we believe will provide long-term shareholder value."