% | $
Quotes you view appear here for quick access.


you are viewing a single comment's thread.

view the rest of the posts
  • white_sox_curse white_sox_curse Jul 7, 2009 12:10 PM Flag

    Thank you!

    You keep forgetting that Royce committed to 6 new ships for a total cost of $360 million. He needs debt to finance them & they are all being delivered over the next 12-18 months. Unless cargo volumes & rates double off current levels, TBS will not be able to pay off this debt (assuming the banks don't walk). The $40 million cash requirement will seem meaningless relative to the future leverage.

    You should be calling TBS and demand an explanation for his newbuild program.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Your numbers are way off!!
      The 6 new tweendecker ships will cost $35.4M each, or $212.4M total, not $360M, as you stated. Financing is in place for $150M, so TBSI will use cash already available of $10.4M to complete each delivery during the next 18 months. This will be no problem at all, and neither will servicing the debt.

      You should call TBS and thank them for sticking to their acquisition plans, during these difficult times. As the world economy continues to recover, these ships will add huge profits.