Star Bulk Announces the Repurchase of an Additional 10 Million of its Common Shares From Oaktree

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, announced today that it entered into a Repurchase Agreement (the “Repurchase Agreement”) with OCM XL Holdings, L.P., a limited partnership incorporated in the Cayman Islands, Oaktree OBC Container Holdings, LLC, a limited liability company organized in the Marshall Islands, and OCM FIE, LLC, a limited liability company organized in Delaware (collectively the “Sellers”), pursuant to which the Company agreed to purchase of an additional 10 million of its common shares (“Purchased Shares”) from the Sellers at a price per common share of $19.50 (such price, the “Purchase Price” and, such transaction, the “Share Repurchase”). The Share Repurchase was approved unanimously by all the disinterested members of the Company’s Board of Directors.

As a result of the Share Repurchase, (i) Oaktree Dry Bulk Holding LLC, an affiliate of the Seller, and its affiliated funds’ (collectively, the “Oaktree Shareholders”) aggregate ownership in the Company is expected to be reduced from approximately 17.2% of the Company’s outstanding common stock to approximately 7.2% and (ii) the number of directors that the Oaktree Shareholders are entitled to nominate pursuant to the shareholders agreement, dated as of July 11, 2014 (the “Oaktree Shareholders Agreement”), among the Company and the Oaktree Shareholders is expected to be reduced to one director.

Closing is expected to occur on December 1, 2023 after which the 10 million shares will be withdrawn and cancelled.

The Purchase Price will be funded from new debt financing, which we intend to repay with proceeds mostly from future vessel sales. The Company remains committed to its current dividend policy and we believe that the Share Repurchase will be accretive to our future dividends per share.
Source: Star Bulk