ATHENS, Greece, June 12, 2012 - Box Ships Inc. (NYSE: TEU) (the "Company"), a global shipping company specializing in the seaborne transportation of containers, announced that it has entered into agreements with subsidiaries of Orient Overseas Container Line Ltd. (OOCL) to acquire two 5,344 TEU post-Panamax container vessels, the 1995-build OOCL Hong Kong and the 1996-build OOCL China. The purchase price per vessel is US$31.155 million, inclusive of fees and the expected dates of delivery for both vessels to the Company are to take place no later than July 14, 2012. Both vessels will be chartered to OOCL for a period of thirty-six (36) months plus or minus thirty days (30) at a net daily rate of US$26,465. The employment of the two vessels is anticipated to generate approximately US$57.0 million of net revenues for the agreed period of the charters.
The Company also announced today that it is commencing a public offering of 700,000 Series B preferred shares, together with warrants to purchase 700,000 of its common shares at anytime between July 1, 2012 and June 30, 2017 at a purchase price of $7.74 per share. The Series B preferred shares and warrants are being offered pursuant to the Company’s effective shelf registration statement as units, each consisting of one Series B preferred share and one warrant to purchase a common share, and will have identical terms to those of the Series B preferred shares and warrants issued to our Chairman, President and Chief Executive Officer. The net proceeds of the offering are expected to be used to redeem a portion of the Series B preferred shares and related warrants sold to our Chairman, President and Chief Executive Officer.
Conference Call and Webcast:
The Company’s management will host a conference call on Wednesday, June 13, 2012 at 10:00 am ET.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-877-317-6789 (USA) or +1-412-317-6789 (international).
There will also be a simultaneous live webcast over the Internet, through the Company’s website (Webcast). Participants in the live webcast should register on the website approximately 15 minutes prior to the start of the webcast.