Marine Link
Thursday, March 28, 2024

Eagle Bulk Gets $208M Credit Facility

Maritime Activity Reports, Inc.

January 23, 2019

Connecticut-headquartered Eagle Bulk Shipping said that its wholly-owned subsidiary Eagle Bulk Ultraco has received a loan commitment from a consortium of banks for a new five year senior secured facility totaling approximately $208 million.

According to the company, the Facility will include a term loan equating to approximately $153 million and a revolving credit facility of $55 million, and will be used to refinance the existing debt of Eagle Bulk Ultraco LLC and Eagle Shipping, as well as for general corporate purposes, including capital expenditures relating to the installation of exhaust gas cleaning systems, or scrubbers.

Upon the closing of the transaction and the repayment in full of the Refinanced Debt, the Company expects to achieve approximately USD 65 million of incremental liquidity. The credit facility is bearing an interest rate of LIBOR plus 2.50% and maturing in 2024.

Financing for the Facility will be provided by ABN AMRO, Credit Agricole Corporate and Investment Bank, Skandinaviska Enskilda Banken AB, DNB Bank ASA, Danish Ship Finance, and Nordea.

The Facility is expected to close by the end of this month, subject to the negotiation and execution of customary definitive documentation and satisfaction of certain closing conditions. The Facility may be increased by up to an additional USD 60 million for the acquisition of additional vessels, subject to certain conditions.
 
Eagle Bulk owns one of the largest fleets of Supramax/Ultramax dry bulk vessels in the world. Supramax/ Ultramax vessels, which are fitted with on-board cranes, range in size from approximately 50,000 to 65,000 dwt.

Subscribe for
Maritime Reporter E-News

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