Marine Link
Friday, December 3, 2021

Eagle Bulk Buys Modern Ultramax Duo for $44M

Maritime Activity Reports, Inc.

June 2, 2021

For illustration only - An Eagle Bulk Shipping vessel / Credit: Eagle Bulk Shipping

For illustration only - An Eagle Bulk Shipping vessel / Credit: Eagle Bulk Shipping

The U.S.-based dry bulk shipowner Eagle Bulk Shipping said Wednesday it had bought two high-spec 2015-built scrubber-fitted Ultramax bulk carriers for $44 million.

The vessels, which will be renamed the M/V Antwerp Eagle and M/V Valencia Eagle, are of the SDARI-64 design and were constructed at Jiangsu Hantong Ship Heavy Industry Co. The company expects to take delivery of both ships during the third quarter of 2021.

Eagle Bulk Shipping said it would fund the acquisition will with cash on hand, which includes equity issued under the company’s ATM program. 

Eagle in May issued 475,894 shares of common stock at an average price of USD 47.39, raising a total of USD 22.5 million in gross proceeds.

Gary Vogel, Eagle’s CEO commented: "Given recent market developments, and our positive view on supply-demand fundamentals and asset prices, we continue to seek accretive growth opportunities. In this regard, we are pleased to have been able to secure two modern scrubber-fitted Ultramaxes in conjunction with an equity raise under our ATM program.”

Separately, Eagle Bulk said it had agreed to sell the M/V Tern, a 2003-built Supramax vessel, for USD 9.7 million. The sale is expected to close in July, prior to the vessel’s statutory drydock and requisite ballast water treatment system (BWTS) installation due date, Eagle Bulk said.

Following these transactions, Eagle’s fleet will total 53 ships, with an average age of 8.7 years.  

"Over the past five years, the Company has executed on a comprehensive fleet renewal and growth initiative, acquiring 29 modern vessels and divesting 20 of its oldest and least efficient ships. These sale and purchase transactions have vastly improved Eagle’s fleet makeup; allowing us to maintain a low average age, increase cargo capacity per vessel, and reduce emissions on a per deadweight ton basis," the company said.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week

Subscribe for Maritime Reporter E-News