Pangaea Logistics Solutions Announces Agreement to Purchase Third Party Equity Ownership of Nordic Bulk Partners
NEWPORT, R.I., Oct. 7, 2024 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (NASDAQ:PANL), a global provider of comprehensive maritime logistics solutions, today announced a definitive agreement to purchase the remaining 50% equity ownership of its consolidated subsidiary, Nordic Bulk Partners LLC, from HS Nordic LLC, for $17.2 million in cash. Nordic Bulk Partners LLC was established in 2019 as a joint venture to construct four Ice Class 1A Post-Panamax dry bulk vessels. The transaction is expected to be completed by November 1, 2024 subject to customary closing terms and conditions.
Upon the completion of the transaction, Pangea will own 100% of the equity in Nordic Bulk Partners. The terms of the Nordic Bulk Partners operating agreement include ownership put and call provisions, which have been negotiated and exercised a year earlier than originally stipulated. HS Nordic's 50% equity ownership was recorded on Pangaea's balance sheet as of June 30, 2024 as a long term liability of $16.6 million, which will be extinguished as a result of this purchase
"This strategic move to take full ownership of these four modern dry bulk vessels further consolidates our fleet of niche Ice Class 1A vessels, cleans up our balance sheet, and improves our operating cash generation" stated Mark Filanowski, Pangaea's Chief Executive Officer. "We continue to pursue our strategic initiative of investing in our fleet of owned vessels, while taking advantage of the favorable macro backdrop in the dry bulk market to unlock incremental net asset value and maximize future returns on our owned fleet. We thank Hudson Structured Capital Management for their partnership in the expansion of our ice class fleet, which has been instrumental since the delivery of the vessels in 2021."
ABOUT PANGAEA LOGISTICS SOLUTIONS LTD.
Pangaea Logistics Solutions Ltd. (NASDAQ:PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise, except as required by law. Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov.
INVESTOR RELATIONS CONTACTS
Gianni Del Signore
Chief Financial Officer
401-846-7790
[email protected]
Noel Ryan or Stefan Neely
Vallum Advisors
[email protected]
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SOURCE Pangaea Logistics Solutions LTD