International Shipholding Corp. (ISH) said it entered into an agreement to purchase three 36,000 Deadweight Ton Handysize double hull dry bulk carrier newbuildings with an option for a fourth newbuilding. The company noted that the 3 new vessels will be constructed at Hyundai Mipo Dockyard Co., Ltd. and are expected to be delivered between December 2010 and February 2011.
The total delivered cost for the 3 newbuildings is expected to be around $90 million. Upon signing the agreement for the 3 vessels, the company paid an initial installment of $17 million using available cash. Future installments will be paid over the construction period with the final installment due upon delivery of each vessel.
Also, the company intends to fund the remaining installments through a combination of borrowings under its revolving credit facility, available cash and long-term financing.
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