2020 Bulkers has signed a letter of intent covering acquisitions that could create a fleet of up to 15 large Anchor Handling Tug Supply vessels, marking a major strategic shift following the sale of its Newcastlemax dry bulk fleet.
The company plans to acquire all outstanding shares of AHTS AS, which began operations in 2026 and currently owns seven large AHTS vessels and has agreements to purchase another three.
The transaction also contemplates the acquisition of five additional project companies, each owning either an AHTS vessel or a contract to acquire one.
Assuming all targeted shares are acquired, the aggregate purchase price is approximately $406 million on a debt-free, cash-free basis.
Consideration is expected to consist primarily of newly issued 2020 Bulkers shares. After completion and delivery of the contracted vessel acquisitions, the company would own as many as 15 large AHTS vessels.
2020 Bulkers is planning approximately $485 million in financing to fund the acquisitions, refinance certain vessels and provide capital for operations and additional consolidation.
The company is in advanced discussions with banks for debt facilities of up to $160 million.
Sponsors Uthalden, MH Capital and Songa Capital are expected to contribute approximately $158 million through equity-in-kind based on current estimates, giving them significant ownership positions in the combined company.
The transaction represents a reinvention of 2020 Bulkers following the April 2026 sale of its six Newcastlemax vessels.
The company believes the large AHTS market currently benefits from an aging fleet, little new vessel supply and high utilization. Only one large AHTS vessel has been delivered since 2018, according to the company.
2020 Bulkers estimates that the segment currently trades at approximately a 40% discount to new-build parity despite improving day rates.
Based on current market rates, operating costs and contemplated financing, management believes the acquired fleet could under certain conditions generate an implied run-rate free-cash-flow-to-enterprise-value yield of approximately 20%.
The company intends to distribute the majority of free cash flow remaining after debt service on a quarterly basis.
AHTS AS has also entered into a contract with Tom Babinski to become CEO. Subject to completion, 2020 Bulkers plans to propose changing its name to AHTS.
