25% Equity Stake in Oslo Bulk Shipping Positions Company for Growth in Underserved Dry Bulk Niche with Attractive Long-Term Fundamentals
Mobile, Alabama, January 6, 2010 – International Shipholding Corporation (NYSE: ISH) today announced that it has invested $6.25 million to acquire a 25% equity stake in Oslo Bulk Shipping, a six-party joint venture that contracted, in 2008, to build eight new mini bulkers. The 8,000 dwt vessels are being constructed at Yangzijiang Shipyard and are scheduled for deliveries commencing in the third quarter of 2010.
Focusing on market opportunities in the Caribbean, South America, Southeast Asia, the Mediterranean and Baltic regions, the Oslo Bulk Shipping joint venture plans to employ the eight mini-bulkers on medium to long-term contracts. These mini bulk carriers have the versatility to move a wide variety of agricultural, construction, metal and energy-related commodities.
Niels M. Johnsen, chairman and chief executive officer, commented: “Oslo Bulk Shipping marks our second transaction in two months aimed at opportunistically growing the Company in a prudent manner. This joint venture positions the Company to once again take advantage of the strong long-term fundamentals in an underserved niche of the drybulk market. Specifically, the mini bulk market is characterized by an aging fleet, a favorable order book and a diverse cargo base.
The total delivered cost for the eight drybulk vessels is expected to be approximately $110 million. Upon signing the agreement for the eight vessels in 2008, Oslo Bulk Shipping paid an initial installment of 20% of the contract price. Future installments will be paid over the construction period, with the final installment due upon the delivery of the vessels. Oslo Bulk Shipping has already secured construction and permanent financing for 80% of the delivered cost. International Shipholding funded its initial investment in Oslo Bulk Shipping with available cash.
About International Shipholding Corporation
International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U. S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.
For more information about the company, please visit www.intship.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on Form 10-K for the year ended December 31, 2008 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
The IGB Group
Lev Janashvili
(212) 227-7098
ljanashvili@igbir.com
David Burke
(646) 673-9701
dburke@igbir.com
International Shipholding
Niels M. Johnsen, Chairman (212) 943-4141