Euroseas acquires two container feeder vessels
Euroseas announced that it signed a memorandum of agreement to purchase the M/V EM Athens and EM Oinousses, both feeder size containership vessels of 2,506 teu built in 2000. The company also announced that it acquired the option to purchase from Euromar two additional container vessels, the M/V EM Corfu, a feeder size containership vessel of 2,556 teu built in 2001, and the M/V Akinada Bridge, a post-panamax size container vessel of 5,600 teu built in 2001 until September 30, 2017. The vessels are to be acquired for a combined amount of about $25M from Euromar, a wholly-owned subsidiary of the company that previously was partially owned by the company, as discussed below. The company plans to finance the acquisitions with a combination of debt and equity. The vessels are expected to be delivered to the company in the fourth quarter of 2017. Furthermore, the company announced that it acquired the 85.714% interest in Euromar it did not already own for nominal cost. As a result of the acquisition, Euromar, which was a joint venture among the company and two private equity firms, became a wholly-owned subsidiary of the company. The company has provided no guarantees to Euromar's lenders, and none of the lenders has any recourse against the company. Euromar, in addition to the four vessels sold or expected to be sold as described above, owns five other vessels, four of which are feeder containerships and one Intermediate size containership.