PIRAEUS, Greece, Sept. 1, 2009 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of eight Handysize vessels and two Handymax vessels, announced today that it has taken delivery of the 1996-built, 30,838 dwt Handysize vessel, the M/V Free Neptune.
The Free Neptune has been fixed for a spot time charter trip of approximately 30 days at a daily rate of $15,000.
Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas, stated, "We are very pleased to have deployed the capital from our recent common stock offering so quickly and in a highly efficient manner. Our ability to purchase the 13-year-old Free Neptune for approximately $11 million and deploy her at a charter rate of $15,000 per day speaks volumes about our ability to access capital in order to make highly attractive investments with a quick return. With her addition, we have increased our fleet from nine to ten vessels, and now own a total dwt of approximately 300,000. As a result of our efficient operating infrastructure and fixed overhead, we expect the acquisition of the Free Neptune to immediately lower our per vessel break-even cost and positively affect operating income and free cash flow in this current third quarter. We are also pleased to witness gradually improving charter rates on the rest of our spot-trading fleet, a sign of the Handysize sector's resilience to market volatility."
The Company also announced new charters for four of its Handysize vessels, the Free Destiny, Free Hero, Free Knight, and Free Maverick, which are detailed below:
* The M/V Free Destiny, a 1982-built, 25,240 dwt Handysize vessel, has been delivered to her charterers for a spot time charter trip of approximately 40 days at $10,000 per day. * The M/V Free Hero, a 1995-built, 24,318 dwt Handysize vessel, has been delivered to her charterers for a spot time charter trip of approximately 30 days at a daily rate of $14,500. * The M/V Free Knight, a 1998-built, 24,111 dwt Handysize vessel, has been fixed for a spot time charter trip of approximately 25 days at a rate of $8,300 per day. * The M/V Free Maverick, a 1998-built, 23,994 dwt Handysize vessel, has been fixed for a spot time charter trip of approximately 35 days at a daily rate of $9,500.
Fleet Employment Data
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Employment as of
Vessel Name Dwt Type Built August 31, 2009*
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Free Destiny 25,240 Handysize 1982 40 day spot time charter
trip at $10,000 per day
through September 2009
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Free Envoy 26,318 Handysize 1984 40-50 day spot time
charter trip at $7,900
per day through
September 2009
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Free Goddess 22,051 Handysize 1995 Balance of time charter at
$8,000 per day through
September 2009 (+50%
profit sharing above
$10,000); increases to
$10,500 per day on
September 15, 2009 through
January/February 2010
(+50% profit sharing above
$12,500 per day)
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Free Hero 24,318 Handysize 1995 30 day spot time charter
trip at $14,500 per day
through September 2009
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Free Impala 24,111 Handysize 1997 25-40 day spot time charter
trip at $8,750 per day
through September 2009
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Free Jupiter 47,777 Handymax 2002 Balance of time charter at
$28,000 per day through
March 2010 and $24,000
per day through March 2011
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Free Knight 24,111 Handysize 1998 25 day spot time charter
trip at $8,300 per day
through September 2009
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Free Lady 50,246 Handymax 2003 Balance of time charter at
$51,150 per day through
May 2010
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Free Maverick 23,994 Handysize 1998 35 day spot time charter
trip at $9,500 per day
through September 2009
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Free Neptune 30,838 Handysize 1996 30 day spot time charter
trip at $15,000 per day
through September 2009
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TOTAL 299,004
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* The average net charter rates per vessel realized by the Company
will depend on actual repositioning time and bunkers consumed
between successive chartering employments, as well as potential
operational off-hires. The above table is provided for indicative
purposes only, and should not to be deemed to reflect actual
operating revenues received from employment of the vessels.
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of eight Handysize vessels and two Handymax vessels. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, http://www.freeseas.gr.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions. Words such as ``expects,'' ``intends,'' ``plans,'' ``believes,'' ``anticipates,'' ``hopes,'' ``estimates,'' and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for dry bulk vessels; competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.