Question-and-Answer Session
Operator
Your first question comes from the line of Natasha Boyden. Please proceed.
Natasha Boyden - Cantor Fitzgerald
I would like to see if we can get a little more detail on these nine options you have out. How much did you manage to get these options, A, and B, get delivery beginning in 2010 given the shipyards are really full right now.
Sophocles Zoullas – Chairman and CEO
That’s a great question Natasha. In fact, in a market that is so tight where most ship yards don’t give any options today, we are very pleased with this outcome. How this came about is, after we announced the deal, I flew to Shanghai for 38 last week and had some very successful meetings with the Sino-Pacific ship building group, which is the parent company for the yard where we are building the 26 ships. We view, and I believe the Sino-Pacific group also views Eagle Bulk as a very good strategic partner for the ship yard. So, there are incredible synergies that are beneficial not only for us in having access to these ships but also the shipyard in having a very large important Supramax owner in their roster of clients. What I think we are particularly pleased about is that we secured these options at no cost to Eagle Bulk.
Natasha Boyden - Cantor Fitzgerald
Speaking of costs, are you able to actually give us some idea of what you got the options for?
Sophocles Zoullas – Chairman and CEO
Sure. Basically the structure is that the nine additional options are for 58,000 ton next generation sister ships that have approximately $2 million per ship of additional upgrades. Bigger engines, bigger generators, better cranes, stronger tank tops, and we got these at an option price of $42.3 million per vessel, which we believe is a very good value in today’s market. It is also of further interest for the callers today that these options are saleable and transferable although that is not our intention at this point of time.
Natasha Boyden - Cantor Fitzgerald
So, when you say they are saleable and transferable, you are saying that if in the next year, the value of these ships is $55 or $60 million dollars each; you could take advantage of that?
Sophocles Zoullas – Chairman and CEO
We could. But, that is something that is a possibility right now, but that is not our intention.
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