Sparrow Capital Investments Ltd. entered into a share purchase agreement to acquire additional 18% stake of Ultrapetrol (Bahamas) Ltd. (NasdaqGS:ULTR) from Hazels (Bahamas) Investments Inc. and Inversiones Los Avellanos S.A. for approximately $100 million on July 13, 2014. Under the terms, Sparrow Capital Investments Ltd. will acquire 25.32 million shares of Ultrapetrol at the price of $4 per share. Upon completion of the transaction, the capital of Ultrapetrol will be comprised exclusively of single voting shares.

In connection with the transaction, it has been agreed with Felipe Menéndez and Ricardo Menéndez that Ultrapetrol will terminate their respective employment and consulting agreements upon closing and enter into new employment and consulting agreements. Felipe Menéndez and Ricardo Menéndez will remain with Ultrapetrol as Directors. Fernando Barros will replace Rodrigo Lowndes as a board of director of Ultrapetrol.

The agreement also provides Hazels with the opportunity to offer to purchase Ultrapetrol's Ocean Business for a price to be determined, subject to terms and conditions including the approval of the independent Director of Ultrapetrol. The transaction is subject to certain customary closing conditions, including having SIPSA and Los Avellanos receive approval from its shareholders for the transaction and the receipt of certain waivers from lenders of Ultrapetrol. The transaction is expected to close in the next 60 days.

Leon Berman and Bryan Degnan of IGB Group acted as a public relations advisor in the transaction. Jefferies LLC acted as financial advisor for Hazels and Inversiones Los Avellanos.