Eagle Bulk Shipping Acquires 26 Ships for $1.1B

Wednesday, July 25, 2007
(Photo courtesy of www.eagleships.com)

Eagle Bulk Shipping, Inc. (Nasdaq:EGLE) has agreed to acquire a fleet of 26 Supramax vessels for $1.1 billion from the parent of Anemi Maritime Services, a private Greek shipping company. The transaction is subject to completion of customary documentation and closing conditions.

"This accretive transaction leverages management's strong industry relationships and reaffirms our commitment to the Supramax asset class, which we believe is highly versatile and optimally aligned with global trade demands. With a total fleet size of 49 vessels after this transaction, Eagle Bulk will be strongly positioned to generate healthy and sustainable cash flows for shareholders over the long term, said Sophocles Zoullas, Chairman and CEO. “Contracted revenues of approximately $1.2 billion from the fleet charters provide us with confidence that we will be able to pay down debt, sustain a quarterly dividend of $0.50 per share over the long term, and execute our growth strategy to increase our returns over time."

The transaction includes:

- 26 Supramax expected to be delivered between 2008 and 2012.

- 21 of the 26 vessels secured by long-term charters up to 2018 with average charter duration in excess of 10 years from today.

- Minimum contracted revenue on the chartered vessels is approximately $1 billion. Uncapped profit sharing on 17 of the chartered vessels may further enhance revenue potential. The acquisition will more than double the fleet size from 23 to 49 vessels, expand tonnage by 124%, and reduce the average age of the fleet to 2 years. Upon completion of this acquisition, the Eagle fleet will consist of 46 Supramax vessels and 3 Handymax vessels. The acquisition will also increase the number of sister ships to 41, further enhancing efficiency and economies of scale.

Contracted revenue on the entire Eagle Bulk fleet of 49 vessels is approximately $1.2 billion. Through 2008, Eagle will have up to 16 vessels to charter to further increase contracted revenue.

Eagle Bulk expects to enter into a proposed new long term $1.6 billion revolving line of credit to be led by Royal Bank of Scotland plc, which is intended to replace its existing credit facility.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

ITIC Measures against Ebola

The International Transport Intermediaries Club (ITIC) has issued the following general advice related to the outbreak of Ebola. Vessels that have recently

ClassNK's Guidelines for Exhaust Gas Cleaning Systems

Leading classification society ClassNK announced that it has released Guidelines for Exhaust Gas Cleaning Systems. These guidelines cover class safety requirements

China, Vietnam Pledge Maritime Cooperation

China and Vietnam have agreed to "address and control" maritime disputes, state media said on Friday, as differences over the potentially energy-rich South China

Bulk Carrier Trends

Cargill: 50,000T of Sugar Affected by Brazil Fire

Approximately 50,000 tonnes of sugar were stored in a warehouse affected by fire in the Teag terminal in Brazil on Monday, Cargill Inc said in a statement. The terminal,

Simushir Under Tow by Barbara Foss

Foss Maritime's ocean-going tug, the Barbara Foss, is towing the Russian cargo vessel, Simushir, which lost power late Thursday night off the west coast of Haida Gwaii.

Vancouver Welcomes Bulker on Her Maiden Voyage

The Port of Vancouver USA welcomed the M/V Jobst Oldendorff, commanded by Capt. Baisie of Ghana, on her maiden voyage October 16. Capt. Baisie and his 21-member

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2443 sec (4 req/sec)