Small Purchase Today in Star Bulk Carriers Debt
By: Tim McPartland,
A helpful reminder to us by a reader on the new issue Star Bulk Carriers 8% Senior Notes(ticker:SBLKL) made us move to get a small position in this tasty yielding issue.
As some you know we are not really too high on either common or preferred shares of any of the ocean shippers, but this one has a bit of a twist in that Oaktree Capital (ticker:OAK), a U.S. MLP, holds a 60% position in Star Bulk Carriers (ticker:SBLK). Oaktree has a few board seats and we think the backing of Oaktree is helpful in that too many of the Greek carriers are poorly managed–we hope that Oaktree will be active in managing the company.
This issue is not high quality and as such we will be keeping our eyes on the financials as they are released to make sure they are moving in the right direction.
We do not expect there will be much (if any) capital gains to be had on this issue–but it does have a maturity date of 2019-so it dovetails with our duration goals.
Details of the issue are here.