Belships

Share Issue/Capital Change • Dec 10, 2019

Belships fleet expansion and share issue

Belships fleet expansion and share issue

Belships ASA (OSE: BEL) has entered into two letters of intent for the

acquisition of two Ultramax bulk carriers.

One 10 year bareboat charter for a 64,000 dwt Ultramax bulk carrier newbuilding.

The vessel will be delivered by a Japanese shipyard during the second half of

2020. The estimated cash breakeven for the vessel upon delivery is about USD

10,750 per day including operational expenses. Belships will pay a sum of USD 3

mill upon signing contract, expected to occur during the first quarter of 2020.

The agreement comes with purchase options below current market values and can be

exercised after the fourth year until the end of the charter.

A secondhand Ultramax bulk carrier built in 2017 by a Japanese shipyard will be

acquired for a price of USD 24.5 million. Delivery is expected during the second

quarter of 2020, after having passed its intermediate drydocking survey. The

payment for the vessel will be settled by issuing new shares equilvalent to 50

per cent of the purchase price at a subscription price of NOK 7.15 per share,

and the remaining in cash upon delivery. The vessel is planned to be financed by

utilising the previously announced Accordian Tranche equivalent to approximately

60 per cent of the purchase price. Hence, the transaction will have a positive

cash effect of about USD 2.45 million.

Both agreements are conditional upon certain subjects being lifted by the

parties involved. Conclusion is expected within January 2020.

Following the announcement made earlier, the BELEAST has been delivered to its

charterer for the agreed bareboat charter and subsequent sale in accordance with

the agreement.

"This is another significant milestone for Belships. We continue to expand and

modernise our fleet whilst maintaining capital discipline in our quest to

develop the company further. The goal of this growth remains focused on creating

value for our shareholders and increasing the attractiveness of trading our

shares," said Belships CEO, Lars Christian Skarsgård.

Following the transactions, the Belships fleet will count 24 Supramax/Ultramax

bulk carriers, with an average age of about 5 years, including newbuildings to

be delivered in 2020 and 2021. Belships strategy going forward is to grow

accretively as a fully integrated shipowner and operator of geared bulk

carriers.

For further information, please contact Lars Christian Skarsgård, Belships CEO,

phone +47 977 68 061 or e-mail LCS@belships.no (mailto:LCS@belships.no)

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.