CC BULK CARRIERS' INVESTORS LIMITED
Feasibility Studies for the Acquisition of up to Eight (8) Bulk Carriers
Notes & Assumptions
DESCRIPTION 1st Year Data
1 Vessels DWT : 30.000 MT
2 Vessels Age: 16-18 Years
3 Economic Life of Vessels: 26 Years 26 Years
4 Charter Income is based on 350 Days 350 Days
5 Running Expenses are based on 365 Days 365 Days
6 Scrap Value per Vessels is based on projections using current market data, in : $1,200,000
7 Time-Charter Hire Fees per vessel : The 1st Year is based on current market data - Subsequently increase every year 4% $1,750,000
8 Running Expenses per vessel : The 1st Year is based on current market data - Subsequently increase every year 1% $1,150,000
9 The Feasibility Studies refer to four (4) cases, depending on the number of vessels that will be bought :
10 Case # 1 : Vessels to be purchased 8
11 Case # 2 : Vessels to be purchased 6
12 Case # 3 : Vessels to be purchased 4
13 Case # 4 : Vessels to be purchased 2
14 Investment Period: Eight (8) Years
15 Purchase Price per Vessel: $3,500,000
16 Operating Capital per Vessel: $300,000
17 Annual Dry-docking / Class Maintenance Costs per vessel, for the 3th and the 6th year : $300,000
18 Management Fees per Year: $100,000
19 Percentage (%) of Loan to Total Investment: 50%
20 Loan Terms:
21 Loan Term (in Years): 4
22 Loan Interest Rate (LIBOR + Spread) 5%
23 The Company will Sell to Outside Investors Common Stock up to: 95%
CC BULK CARRIERS INVESTORS LIMITED
Feasibility Studies for the Acquisition of up to Eight (8) Bulk Carriers
CASE # 1 : ACQUISITION OF EIGHT (8) VESSELS
Year 1 2 3 4 5 6 7 8 Capital Needed
Charter Income $14,000,000 $14,560,000 $15,142,400 $15,748,096 $16,378,020 $17,033,141 $17,714,466 $18,423,045
Running Expenses $9,200,000 $9,292,000 $9,384,920 $9,478,769 $9,573,557 $9,669,292 $9,765,985 $9,863,645
Dry-docking/Class Maintenance Costs $2,400,000 $2,400,000
Management Fees $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Loan Repayment $3,948,166 $3,948,166 $3,948,166 $3,948,166
$16,400,000
NET PROFITS $751,834 $1,219,834 -$690,686 $2,221,161 $6,704,463 $4,863,848 $7,848,481 $8,459,400
Accumulated Net Profits $751,834 $1,971,669 $1,280,983 $3,502,144 $10,206,607 $15,070,455 $22,918,936 $31,378,336
Earnings from Selling the Vessels as Scrap at the end of the 8-Year Period $9,600,000
Return of Operating Capital $2,400,000
TOTAL AMOUNT TO BE RETURNED AT THE END OF THE 8-YEAR PERIOD $43,378,336
CASE # 2 : ACQUISITION OF SIX (6) VESSELS
Year 1 2 3 4 5 6 7 8 Capital Needed
Charter Income $10,500,000 $10,920,000 $11,356,800 $11,811,072 $12,283,515 $12,774,855 $13,285,850 $13,817,284
Running Expenses $6,900,000 $6,969,000 $7,038,690 $7,109,077 $7,180,168 $7,251,969 $7,324,489 $7,397,734
Dry-docking/Class Maintenance Costs $1,800,000 $1,800,000
Management Fees $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Loan Repayment $2,961,124 $2,961,124 $2,961,124 $2,961,124
$12,300,000
NET PROFITS $538,876 $889,876 -$543,014 $1,640,871 $5,003,347 $3,622,886 $5,861,361 $6,319,550
Accumulated Net Profits $538,876 $1,428,752 $885,737 $2,526,608 $7,529,955 $11,152,841 $17,014,202 $23,333,752
Earnings from Selling the Vessels as Scrap at the end of the 8-Year Period $7,200,000
Return of Operating Capital $1,800,000
TOTAL AMOUNT TO BE RETURNED AT THE END OF THE 8-YEAR PERIOD $32,333,752
CASE # 3 : ACQUISITION OF FOUR (4) VESSELS
Year 1 2 3 4 5 6 7 8 Capital Needed
Charter Income $7,000,000 $7,280,000 $7,571,200 $7,874,048 $8,189,010 $8,516,570 $8,857,233 $9,211,522
Running Expenses $4,600,000 $4,646,000 $4,692,460 $4,739,385 $4,786,778 $4,834,646 $4,882,993 $4,931,823
Dry-docking/Class Maintenance Costs $1,200,000 $1,200,000
Management Fees $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Loan Repayment $1,974,083 $1,974,083 $1,974,083 $1,974,083
$8,200,000
NET PROFITS $325,917 $559,917 -$395,343 $1,060,581 $3,302,231 $2,381,924 $3,874,240 $4,179,700
Accumulated Net Profits $325,917 $885,834 $490,492 $1,551,072 $4,853,304 $7,235,228 $11,109,468 $15,289,168
Earnings from Selling the Vessels as Scrap at the end of the 8-Year Period $4,800,000
Return of Operating Capital $1,200,000
TOTAL AMOUNT TO BE RETURNED AT THE END OF THE 8-YEAR PERIOD $21,289,168
CASE # 4 : ACQUISITION OF TWO (2) VESSELS
Year 1 2 3 4 5 6 7 8 Capital Needed
Charter Income $3,500,000 $3,640,000 $3,785,600 $3,937,024 $4,094,505 $4,258,285 $4,428,617 $4,605,761
Running Expenses $2,300,000 $2,323,000 $2,346,230 $2,369,692 $2,393,389 $2,417,323 $2,441,496 $2,465,911
Dry-docking/Class Maintenance Costs $600,000 $600,000
Management Fees $100,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Loan Repayment $987,041
$987,041 $987,041 $987,041
$4,100,000
NET PROFITS $229,959
$112,959 -$247,671 $480,290 $1,601,116 $1,140,962 $1,887,120 $2,039,850
Accumulated Net Profits $342,917
$112,959 $95,246 $575,536 $2,176,652 $3,317,614 $5,204,734 $7,244,584
Earnings from Selling the Vessels as Scrap at the end of the 8-Year Period $2,400,000
Return of Operating Capital $600,000
TOTAL AMOUNT TO BE RETURNED AT THE END OF THE 8-YEAR PERIOD $10,244,584
Share Capital Structure & Projected Earnings Per Share
TOTAL NUMBER PRICE OF EACH Projected
TOTAL EARNINGS % PER
OF SHARES THAT SHARE TO BE Average
TOTAL NUMBER PER SHARE AT YEAR
WILL BE SOLD SOLD TO Yearly
OF SHARES THE END OF THE PER
TO OUTSIDE OUTSIDE Earnings
8-YEAR PERIOD SHARE
INVESTORS INVESTORS Per Share
CASE # 1 : PURCHASE OF EIGHT (4) VESSELS 1,400,000 1,330,000 $12.33 $30.98 $3.87 18.91%
CASE # 2 : PURCHASE OF SIX (6) VESSELS 1,050,000 997,500 $12.33 $30.79 $3.85 18.72%
CASE # 3 : PURCHASE OF FOUR (4) VESSELS 700,000 665,000 $12.33 $30.41 $3.80 18.33%
CASE # 4 : PURCHASE OF TWO (2) VESSELS 350,000 332,500 $12.33 $29.27 $3.66 17.17%