Eagle Bulk Shipping Inc., has received a commitment from its lender, the Royal Bank of Scotland plc
, to increase and amend its revolving credit facility to $450m from $330m. The entire $450m facility will be available for a period of six years from the availability date, compared to four years remaining in the commitment period of the Company's existing facility. There are no principal repayment obligations during this initial six-year period.
Over the remaining four years, the facility will reduce in semi-annual amounts of $25m with a final reduction of $250m occurring simultaneously with the last semi-annual reduction.
The amended facility, which is subject to the execution of definitive documentation, will bear interest at the rate of 0.75 percent to 0.85 percent over LIBOR (decreased from 0.95 percent over LIBOR), depending upon the amount of debt drawn as a percentage of the value of the company's vessels. The company will pay a commitment fee of 0.25 percent per annum (decreased from 0.40 percent) on the undrawn amount of the facility.