Euroseas Ltd. announced today that its joint venture company, Euromar LLC, signed a memorandum of agreement to purchase the M/V TORGE S, a geared containership of 33,216 dwt and 2,450 twenty foot equivalent units (teu) built in 2003 in Japan.
The vessel is expected to be delivered to Euromar in October 2011; it will be renamed EM ANDROS after its delivery.
On March 25, 2010, Euroseas entered into a Joint Venture with companies managed by Eton Park Capital Management and Rhone Capital, two recognized private investment firms to form Euromar a Marshall Islands limited liability company. Eton Park’s investments are made through Paros Ltd., a Cayman Islands exempted company, and Rhone’s investments are made through the Cayman Islands limited companies All Seas Investors I Ltd., All Seas Investors II Ltd., and the Cayman Islands exempted limited partnership All Seas Investors III LP. Pursuant to the terms of the Joint Venture, Euroseas would invest up to $25.0 million for a 14.28% interest in the Joint Venture, while Eton Park and Rhone would each invest up to $75.0 million for a 42.86% interest each in the Joint Venture, for a total of $175.0 million. Euroseas has contributed $15.0 million of its $25.0 million commitment to-date.
With the acquisition of M/V TORGE S, Euromar will have purchased eight geared containerships with an average age of approximately 7.9 years.