Skip to main content

Scorpio Bulkers to refinance ultramax vessel

Published by
Dry Bulk,


Yesterday, Monaco-based dry bulk shipping company Scorpio Bulkers Inc. (Scorpio Bulkers) entered into a financing transaction in respect of one of the company’s ultramax vessels with an unaffiliated third party.

As part of the transaction, the company is to sell a Japanese ultramax, that was built in 2016, SBI Hermes, for a consideration of US$20.5 million and then lease it back from the buyer through a five-year bareboat charter agreement at a rate of US$5850/d. If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at current swap rates would be LIBOR plus 1.39% per annum.

The transaction also provides the company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement. This transaction, which shall be treated as a financial lease for accounting purposes, increases the company’s liquidity by approximately US$11.3 million after repayment of the vessel’s existing loan. 

Read the article online at: https://www.drybulkmagazine.com/shipping/28092018/scorpio-bulkers-to-refinance-ultramax-vessel/

You might also like

Kabel Schlepp

WEBINAR - Key criteria to ensure proper selection of a cable drag chain

In this webinar KabelSchlepp will review and discuss the items needed to ensure that a cable track is properly selected and sized for the user’s application. How diameters and weights of the fill package effect cable track selection and how the jacket material of the fill package influences the cable track design. Register for free today »

 

New Bedeschi project for Kima

The project is for the transportation of fresh urea from granulation to bagging silos or to urea bulk storage.

 
 

Embed article link: (copy the HTML code below):