Eagle Bulk Orders Two

Wednesday, November 08, 2006
Eagle Bulk Shipping Inc. > (Nasdaq:EGLE), a global marine transportation company specializing in > the Supramax segment of the dry bulk shipping industry, today announced > that it has signed contracts with IHI Marine United Inc., one of > Japan's pre-eminent shipyards, for the construction of two 'Future-56' > class Supramax vessels. These 56,000 deadweight ton vessels have a > contract price of approximately $33.5 million each and are expected to > be delivered in January and February of 2010, respectively. Upon > delivery of these vessels, Eagle Bulk's fleet will include 18 vessels, > 14 of which will be Supramax-class. > > The Company also announced that it has amended its existing revolving > credit facility from its sole lender, Royal Bank of Scotland plc, to > increase the borrowing capacity from $450 million to $500 million. The > financing of the new vessels will not affect the Company's quarterly > cash dividend payout. > > Sophocles Zoullas, Eagle Bulk's Chairman and Chief Executive Officer, > commented, "We are very excited to have secured these world-class > assets at what we believe to be very favorable values. Moreover, we are > pleased that IHI Marine United negotiated directly with the Company for > the construction of the new vessels, and we look forward to working > closely with IHI Marine United throughout the construction process. We > believe these assets will help solidify Eagle Bulk's leadership > position into the future." > > The contract price for each vessel is 3.655 billion Japanese Yen or > approximately $33.5 million after giving effect to currency hedges. The > Company has placed deposits of 1.462 billion Japanese Yen or $12.4 > million for each of the vessels which were funded through borrowings > from its credit facility, and will pay an additional 10% of the > contract price in November 2009, and the remainder upon delivery which > is expected in January and February 2010, respectively. The Company has > hedged its Japanese Yen exposures into U.S. Dollars in order to > effectively eliminate currency risk. > > The $500 million amended credit facility contains the same terms as the > Company's previous facility with a maturity in 2016. The structure of > our financing will enable us to capitalize pre-delivery payments under > the shipbuilding contracts and costs associated with supervision and > financing the new vessels. As a result, our earnings available for > quarterly cash dividends to our shareholders will not be impacted. > Furthermore, the amended credit facility increases the Company's > undrawn commitment to over $260 million, providing availability to fund > future growth.
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Canadian Icebreaker Refit Contracts Awarded

The Canadian Government informs it has awarded a $6.5 million contract to Babcock Canada Inc. for critical refit work for Canadian Coast Guard ship 'CCGS Louis S.

Atkins Gain Maersk Oil Engineering Contract

Design, engineering and project management consultancy Atkins, says it has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

Newport News, ODU Partner for Bachelor's Degree Program

Huntington Ingalls Industries (HII) announced today that apprentices at Newport News Shipbuilding will now have the opportunity to earn a bachelor of science degree

Navy

US Navy Completes Korea Ferry SAR Mission

With concurrence from South Korean commanders, the U.S. Navy amphibious assault ship USS Bonhomme Richard (LHD 6) is departing waters around Jindo, South Korea

Today in U.S. Naval History: April 23

Today in U.S. Naval History: April 23 1917 - Launching of USS New Mexico, first dreadnought with turboelectric drive 1918 - USS Stewart destroys German submarine off France 1945 - In only U.

CNR: Innovation Maintains US Naval Advantages

An interview with Rear Adm. Matt Klunder, U.S. Navy Chief of Naval Research What are your near term, mid-term and long term science and technology (S&T) objectives?

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1166 sec (9 req/sec)