Paragon Shipping Inc. sails to 52-week high, buys vessels
Shares of Paragon Shipping Inc. (Nasdaq: PRGN) have sailed to a new 52-week high on news before the start of trading that the Greek sea transportation company will acquire two new carriers.
The “Coral Seas” has a capacity of 74,477 deadweight tonnage (dwt) and can be hired for $54,000 per day for a period of 23 to 25 months. The “Golden Seas” has a capacity of 74,475 dwt and can be hired for $64,000 per day for a period of 11 to 13 months. The two vessels, which cost a total of $178 million, will be delivered between November and December 2007.
“We are pleased to announce the further expansion of our fleet by the addition of these two modern Panamax vessels,” said chairman and CEO Michael Bodouroglou in a statement. “These latest acquisitions clearly demonstrate our strategic aim of acquiring modern vessels with secure employment for the next one to two years.”
Bodouroglou added that the purchase of the two new carriers brings the total number of vessels in Athens-based Paragon’s fleet to 11 and lowers their average age to 6.5 years. The company said that it will pay for the acquisition with bank debt under its existing credit facilities and available cash on hand.
At 3:53 p.m. ET, Paragon Shipping (PRGN) shares had gained $1.99, or 10%, to $21.44, a new 52-week high. The previous 52-week high was $19.90, achieved on Oct. 5. The 52-week low of $13.75 was reached on Aug. 16.
