Scorpio Bulkers Sells Two More Vessels

The international provider of marine transportation of dry bulk commodities Scorpio Bulkers has once again sold vessels with two new sale and lease back agreements.

This time the sale concerns two Ultramax vessels - SBI Libra and SBI Virgo - to an unaffiliated third party.

Upon completion, which is estimated to take place in the second quarter of 2019, the Company’s liquidity is expected to increase by up to $17.0 million in aggregate, comprising $14.0 million upon closing after the repayment of outstanding debt and an additional tranche of up to $3.0 million for installation of exhaust gas cleaning systems (scrubbers) on both vessels.

As part of the agreements, the Company will bareboat charter-in the vessels for a period of eleven years and have purchase options beginning at the end of the fourth year of each agreement.

Upon the completion of the pending sale of two Kamsarmax vessels, Scorpio Bulkers Inc. will have an operating fleet of 55 vessels consisting of 54 wholly-owned or finance leased drybulk vessels (including 17 Kamsarmax vessels and 37 Ultramax vessels), and one time chartered-in Ultramax vessel.

In a separate press release, Norway-based Ocean Yield ASA announced that it has agreed to acquire two modern Ultramax dry bulk vessels for a total consideration of USD 42 million net of a seller's credit, with 11-year bareboat charters to Scorpio Bulkers Inc.

In addition, Ocean Yield has committed to part finance the scrubber installation on both vessels, with an additional USD 3 million, which is expected in early 2020.