Pyxis Tankers Inc., an international shipping company, announced today that it has completed the acquisition of an 82,013 dwt dry bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The $26.625 million purchase of the eco-efficient Kamsarmax, fitted with a ballast water treatment system and scrubber, was funded by a combination of secured bank debt of $14.5 million and cash on hand. The five year amortizing bank loan is priced at Term SOFR +2.35% and is secured by, among other things, the vessel. The vessel has been named the “Konkar Asteri” and is expected to commence commercial operations shortly. As of December 31, 2023, on a pro-forma basis for the acquisition of the vessel, including payment of transaction fees and expenses and application of vessel working capital, consolidated total cash would have been $45.6 million, inclusive of restricted cash of $2.15 million, and total funded debt would have been $76.0 million.
In addition, Valentios Valentis, our Chairman and CEO, provided the following brief commercial update:
“As previously disclosed, we completed the sale of our 2015 built product tanker, the “Pyxis Epsilon”, in Mid-December, 2023 and at year-end, the Company was operating three medium range product tankers (each an “MR”). For the fourth quarter of 2023, we expect to report a preliminary daily average time charter equivalent charter rate (“TCE”) *1 of approximately $30,500 per MR. The product tanker chartering environment continues to be constructive, especially given recent geo-political events. As of February 15, 2024, 75% of the available days in the first quarter of 2024 for our MR’s were booked at an estimated average TCE of $29,200 per vessel. Two of our MRs continue to operate under time charters (“T/C”) and one MR in the spot market.
The acquisition of the “Konkar Asteri” provides the opportunity to expand our commercial footprint with a fleet of eco-efficient, scrubber-fitted mid-sized dry bulk carriers. The Company has a controlling interest in a 2015-built Ultramax, the “Konkar Ormi”. Shortly after the acquisition, “Konkar Ormi” commenced commercial operations in October 2023 under a short-term T/C. For the fourth quarter of 2023, we expect to report an estimated daily TCE of $16,900 for this vessel. So far in 2024, we have not experienced the usual seasonal slowdown in the dry bulk sector. Global demand for many dry bulk commodities has been supported by solid GDP growth and certain atypical events, such as transit restrictions through the Panama Canal due to extreme drought conditions. As of February 15, 2024, 75% of available days in the first quarter of 2024 were booked for the Ultramax at an average TCE of $20,900. We expect to employ our dry bulk vessels under a mix of T/C’s and spot voyages.”
