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Eagle Bulk receives loan commitment worth US$208 million

Published by , Assistant Editor
Dry Bulk,

Eagle Bulk Shipping Inc. has announced that Eagle Bulk Ultraco LLC, a wholly-owned subsidiary of the company, has received a loan commitment from a consortium of banks for a new five year senior secured facility (the facility) totalling approximately US$208 million, bearing an interest rate of LIBOR plus 2.50% and maturing in 2024.

The facility will include a term loan equating to approximately US$153 million and a revolving credit facility of US$55 million, and will be used to refinance the existing debt of Eagle Bulk Ultraco LLC and Eagle Shipping LLC (the refinanced debt), 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 US$65 million of incremental liquidity.

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 US$60 million for the acquisition of additional vessels, subject to certain conditions.

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