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 Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Fugro to Survey off Equatorial Guinea

Fugro has been awarded a contract by Ophir Equatorial Guinea (Block R) Limited for the provision of survey services for the development of large scale assets and

Thyssenkrupp Bids for Australian Sub Contract

German industrial group Thyssenkrupp has submitted an offer to the Australian government for a contract to build stealth submarines potentially worth tens of billions of euros,

Torm Orders Four Tankers in $200 mln Deal

Danish shipping company Torm has signed an order for four fuel-efficient LR2 (long-range) product tanker vessels from Guangzhou Shipyard International in China for $200 million.


Thyssenkrupp Bids for Australian Sub Contract

German industrial group Thyssenkrupp has submitted an offer to the Australian government for a contract to build stealth submarines potentially worth tens of billions of euros,

Australia Submarine Program Enters Next Phase

Evaluation of Australia’s Future Submarine program proposals will now commence with all three potential international partners submitting their proposals in full,

North Korea Submarine-Launch Missile a Flop Show

North Korea apparently failed to launch a ballistic missile from a submarine in a sign that Pyongyang has yet to master the technology, Yonhap news agency quoted a government official as saying.

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.3412 sec (3 req/sec)