Oceanaut (OKN) Agrees to Acquire 4 Dry Bulk Carriers for $352M; Guides for FY09

August 25, 2008 7:54 AM EDT

Oceanaut, Inc. (AMEX: OKN) today announced that it has entered into definitive agreements pursuant to which it has agreed to purchase, for an aggregate purchase price of $352 million in cash, four dry bulk carriers. The deal will be financed by the cash held in Oceanaut's trust account along with the proceeds from an already secured loan facility and preferred equity to be issued to Excel Maritime (NYSE: EXM).

Upon delivery of the vessels to be acquired as part of the deal, Oceanaut will own an initial fleet of three Panamax dry bulk carriers and one Supra-Panamax dry bulk carrier. The vessels have a combined cargo-carrying capacity of over 278,000 deadweight tons and an average age of approximately four years.

Oceanaut intends to increase distributable cash flow and dividends per share through accretive acquisitions of additional vessels. The Board of Excel has granted Oceanaut a right of first refusal to consider for purchase any vessels with long-term charters (over 4 years) that Excel intends to sell in the future and for any acquisition opportunities for vessels with long term charters (over 4 years) that Excel might be presented with in the future.

Based on the fixed time charters and expected operating costs for the initial fleet, Oceanaut sees FY09 sales of $60.6 million. The company plans to pay a quarterly dividend of $0.28 per share payable for Q4. This implies a 13.6% yield based on Oceanaut's estimated cash held in trust of $8.25 per share as of September 30, 2008.

In addition, Oceanaut's sponsors have agreed to convert 5.6 million shares into non-cumulative subordinated shares which will not be entitled to receive dividends until the second quarter of 2010. Thereafter, dividends will be paid on subordinated shares provided that common shareholders have received full payment of all base dividends.

Oceanaut, Inc. does not have significant operations.

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