Pangaea Logistics, MTM to combine fleets of dry bulk vessels

Pangaea Logistics Solutions and M.T. Maritime Management announced a definitive agreement to merge fifteen handy-size dry bulk vessels into Pangaea’s 26 vessel supramax, ultramax, panamax and post-panamax fleet. The handy vessels are currently owned by Strategic Shipping, a privately held company managed by MTM located in Southport, Connecticut. The fifteen handy-size vessels are valued at approximately $295M, inclusive of vessel related financing agreements of approximately $102M, resulting in a total net asset value of $193M. As consideration, Pangaea will issue approximately 19M shares of its common stock to SSI equal to approximately 29% of the company’s outstanding common stock upon completion of the proposed transaction, which represents the relative net asset value of SSI’s vessels compared to the estimated net asset value of Pangaea of approximately $478M, or about $10.20 per share. The transaction is expected to close in the fourth quarter 2024, subject to customary closing conditions and shareholder approval.