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The letter of intent is subject to a number of conditions, including (a) the receipt of a commitment letter from a bank for a fully underwritten private issuance of $145.0 million aggregate principal amount of 7% Senior Unsecured Convertible Notes due 2014 (the "Notes"), the proceeds of which would be used primarily to fund vessel acquisitions and partially repay existing indebtedness; and (b) obtaining certain amendments to the Company's existing senior credit facility. The letter of intent obligates the parties to negotiate in good faith, but does not obligate them to complete definitive agreements or to close the transaction. The letter of intent provides for a binding 60-day exclusivity period and a $3,000,000 break-up fee payable to Grandunion in certain events. The exclusivity period will terminate if Grandunion is unable to procure a signed commitment letter to fully underwrite the $145.0 million in principal amount of the Notes and certain amendments to the Company's existing credit facility. The letter of intent may also be terminated if no definitive agreement has been entered into by August 31, 2009. About Aries Maritime Transport Limited Aries Maritime Transport Limited is an international shipping company that owns and operates products tankers and container vessels. The Company's products tanker fleet consists of five MR tankers and four Panamax tankers, all of which are double-hulled. The Company also owns a fleet of three container vessels that range in capacity from 1,799 to 2,917 TEU. Seven of the Company's 12 vessels are secured on period charters. Charters for two of the Company's products tanker vessels currently have profit-sharing components. For more information about Aries Maritime Transport Limited, please visit the Company's website at http://www.ariesmaritime.com. About Grandunion Inc. Grandunion is a Marshall Islands corporation controlled by Michael Zolotas and Nicholas Fistes. Each of Messrs. Zolotas and Fistes has over 20 years experience operating shipping companies. Mr. Fistes serves currently as the Chairman of Grandunion, Chairman of the International Association of Independent Tanker Owners (IntertanKo) and a member of the Executive Committee of Intercargo, the international association of dry cargo vessel owners. Mr. Zolotas is the CEO of Grandunion, and President of Stamford Navigation Inc. Both Mr. Fistes and Mr. Zolotas hold memberships in a number of classification societies. Aries Maritime Transport Limited press release |
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Aries Maritime Transport Limited Signs Letter of Intent for Acquisition of Control by Grandunion