PIRAEUS, Greece, Aug. 12, 2008 (PRIME NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE), (Nasdaq:FREEW), (Nasdaq:FREEZ) ("FreeSeas" or "the Company"), a provider of seaborne transportation for drybulk cargoes, announced today that it has agreed to purchase one second-hand drybulk carrier from an unaffiliated third party for approximately US$39.6 million.
The vessel is a 1998-built, 23,994 dwt Handysize vessel built in Japan, and is scheduled for delivery to FreeSeas in late August or early September of 2008. The Free Maverick is currently employed on a time-charter through April/July 2009 at $32,000 per day, and will continue that employment once joining the FreeSeas fleet. The Company intends to finance the acquisition using cash on hand and financing from Hollandsche Bank-Unie NV.
"Even in the current volatile market environment, FreeSeas has been able to secure quality tonnage at a competitive price to enhance the profile of the fleet," said Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas. "The addition of the Free Maverick is compelling for two extremely important reasons. First, she comes to FreeSeas with a charter through next year at a very competitive rate. Furthermore, she will be delivered within the next two to three weeks, and will be contributing revenue almost immediately."
Mr. Varouxakis concluded, "We are constantly seeking ways to expand our fleet and to increase our net income and free cash flow. The Free Maverick will bring our total number of vessels to nine, and we expect that there will be additional opportunities to grow even further before the end of the year. With 93% of our operating days fixed for 2008 and 49% already fixed for 2009, we remain confident that we can navigate the current market and further increase our earnings capacity."
The following tables detail FreeSeas' fleet including the vessel announced today:
Current fleet:
======================================================================
Vessel Name Dwt Vessel Type Built Employment
----------------------------------------------------------------------
Free 25,240 Handysize 1982 60 to 90 day time-charter
Destiny at $28,500 p/d
----------------------------------------------------------------------
Free 26,318 Handysize 1984 One-year time-charter
Envoy at $32,000 p/d through
June/August 2009
----------------------------------------------------------------------
Free 22,501 Handysize 1995 Two-year time-charter
Goddess through November 2009 at
$19,250 p/d
----------------------------------------------------------------------
Free Hero 24,318 Handysize 1995 Time-charter through
February 2009 at $14,500 p/d
----------------------------------------------------------------------
Free 24,111 Handysize 1997 One-year time-charter
Impala through April 2009 at
$31,500 p/d
----------------------------------------------------------------------
Free 47,777 Handymax 2002 Three-year time-charter
Jupiter through February 2011 at
$32,000/28,000/24,000 p/d
----------------------------------------------------------------------
Free 24,111 Handysize 1998 One-year time-charter
Knight through March 2009 at
$31,500 p/d
----------------------------------------------------------------------
Free Lady 50,246 Handymax 2003 Two-year time-charter
through June/September 2010
at $51,150 p/d
======================================================================
Vessel to be delivered:
======================================================================
Vessel Dwt Vessel Type Built Expected Employment
Name Delivery
----------------------------------------------------------------------
Free 23,994 Handysize 1998 August/ Time-charter through
Maverick September April/July 2009 at
2008 $32,000 p/d
======================================================================
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of six Handysize vessels and two Handymax vessels, with one Handysize vessel to be delivered. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at www.sec.gov. For more information about FreeSeas Inc., please go to our corporate website, www.freeseas.gr.