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

Legal

Kenya Charges 9 Foreigners over Heroin Haul

Nine foreign nationals were charged in a Kenyan court on Thursday with trafficking the biggest ever single seizure of drugs at the Indian Ocean port of Mombasa.

Former MSC Manager Sentenced on Bribes Charges

Former Afloat Programs Manager at the United States Navy Military Sealift Command (MSC), Kenny E. Toy, was sentenced to 96 months in prison for receiving bribes, the U.

FERC Approves Freeport LNG Export Project

U.S. federal regulators on Wednesday approved construction of Freeport LNG Development LP's liquefied natural gas export project in Texas. Freeport is the third U.

Bulk Carrier Trends

Redwood City Sees Cargo Movement Boost

Port of Redwood City reports 19% increase in cargo movement; highest since 2006 and third highest in modern history Reflecting a significant increase in construction

Nordic American Offshore Declares 2Q Dividend

Nordic American Offshore Ltd. announced that its Board of Directors has declared a dividend of $0.45 per common share for the second quarter 2014. This is the same as for the first quarter 2014.

Vale Profit Falls Amidst Record Output

Brazilian miner Vale SA posted a sharp decline in profit from the previous quarter as lower iron ore prices undermined record production of the steel-making ingredient.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
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: 0.1054 sec (9 req/sec)