DryShips says it has entered a deal with companies controlled by its founder George Economou for "zero cost" options to purchase four very large gas carriers that are currently under construction at Hyundai Heavy Industries.
The ships, hulls S881 through S884, are currently under construction at Hyundai's Samho yard, were originally ordered by the Economou-backed TMS Cardiff Gas.
The options give DryShips three months to exercise four separate options to purchase the VLGCs for $83.5m per vessel, for a total outlay of $334m. The transaction has been approved by the independent directors of the company, based on third-party broker valuations.
DryShips says the cash will come from its current cash stockpile, as well as the recent $200m investment from a company called Kalani Investments, and a $200m refinancing of DryShips done through Economou's own finance vehicle Sifnos Shareholders.
The vessels would be managed by TMS Cardiff Gas, with each ship employed on time charter to major oil companies and traders.
"We believe in the long-term prospects of the gas carrier market," Economou said. "If the company elects to exercise any of its options, each acquisition will be highly accretive to the company's earnings and will provide visible and stable cash flow at above market rates."
