Scorpio Bulkers Inc. announced that it has received a commitment for a $540 million loan facility and provides an update on the financing of its fleet.
On July 21, 2014, the company received a commitment from two European financial institutions for a loan facility of up to $540 million. The facility will be used to finance up to 55% of the contract price of 24 vessels, including six Ultramax, nine Kamsarmax and nine Capesize vessels currently under construction for delivery in 2015 and 2016. The loan facility has a final maturity of six years from the date of signing. The terms and conditions of this commitment are consistent with those of the company's existing credit commitments. The closing of the loan facility, which is expected to occur within 2014, remains subject to customary conditions precedent, including negotiation and execution of final documentation.
As of July 22, 2014, the company has received proposals from European and Asian financial institutions to finance a portion of the cost of its remaining unfinanced vessels. If definitive agreements are entered into on these terms, the amounts provided by such facilities will vary between 55% of the contract price and 60% of the market value of the remaining unfinanced vessels currently under construction. The terms and conditions of these proposals, for which commitments are expected within 2014, are consistent with those of the company's existing credit commitments. The closing of any resultant loan facilities would remain subject to credit approval and customary conditions precedent, including negotiation and execution of final documentation.