Eagle Bulk Shipping Avails Loan Secured by 21 Vessels
American shipowner Eagle Bulk Shipping has announced that Eagle Bulk Ultraco, a wholly-owned subsidiary of the Company, has closed on a new five-year senior secured facility totaling USD 208.4 million, maturing in 2024.
The global transporter of drybulk commodities said that the Facility is secured by 21 vessels, including the M/V Cape Town Eagle which was acquired earlier this month, and includes a term loan of USD 153.4 million and a revolving credit facility of USD 55 million.
Gary Vogel, Eagle’s CEO, said: “We are very pleased that the Company continues to secure increasingly attractive debt financing and has increased its financial flexibility in the process. We appreciate the continued support from our existing lenders, ABN AMRO, Credit Agricole, and SEB, and are pleased to have DNB, Danish Ship Finance, and Nordea joining as lenders. We believe the terms of this financing and the expansion of our banking group reflect Eagle’s standing within the industry and our prudent approach to our capital structure.”
A portion of the net proceeds from the term loan were used to repay in full the existing debt of Eagle Bulk Ultraco LLC and Eagle Shipping LLC. The remaining balance of the net proceeds of the term loan and funds available under the RCF, which in aggregate total approximately USD 65 million, can be used for general corporate purposes, including capital expenditures relating to the installation of exhaust gas cleaning systems, or scrubbers.
Under certain conditions, the Facility may be increased by up to USD 60 million to finance vessel acquisitions.
Financing for the Facility has been provided by ABN AMRO, Credit Agricole Corporate and Investment Bank (Credit Agricole), Skandinaviska Enskilda Banken AB (SEB), DNB Bank ASA (DNB), Danish Ship Finance, and Nordea.