Eagle Bulk Ultraco, a wholly owned subsidiary of Eagle Bulk Shipping, closed on a new five-year senior secured facility totaling $208.4 million. Financing participants on the facility included ABN AMRO, Credit Agricole Corporate and Investment Bank, Skandinaviska Enskilda Banken AB, DNB Bank, Danish Ship Finance and Nordea.
The facility will bear an interest rate of LIBOR plus 2.50% and mature in 2024. It is secured by 21 vessels, including the M/V Cape Town Eagle, which was acquired earlier this month, and includes a term loan of $153.4 million and a revolving credit facility of $55 million.
Gary Vogel, Eagle CEO, commented, “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 and Eagle Shipping. The remaining balance of the net proceeds of the term loan and the revolver, which in aggregate total approximately $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 $60 million to finance vessel acquisitions.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!