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Eagle Bulk Shipping secures funds for scrubber installations

23 Jan 2019

New York listed dry bulk shipowner-operator firm Eagle Bulk Shipping Inc. on Tuesday (22 January) announced subsidiary Eagle Bulk Ultraco LLC has received a USD 208 million loan commitment from a consortium of banks bearing an interest rate of LIBOR plus 2.50% and maturing in 2024.

The Facility will include a term loan equating to approximately USD 153 million and a revolving credit facility of USD 55 million.

It will be used to refinance the existing debt of Eagle Bulk Ultraco LLC and Eagle Shipping LLC, as well as for general corporate purposes, including capital expenditures relating to the installation of exhaust gas cleaning systems, or scrubbers.

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 USD 60 million for the acquisition of additional vessels, subject to certain conditions
Eagle Bulk Shipping in November 2018 exercised options to purchase 15 additional exhaust gas cleaning systems (scrubbers) to be retrofitted on its vessels.

This follows the company’s prior announcement that it had entered into a series of agreements for the purchase of up to 37 scrubbers; comprised of firm orders for 19 scrubbers and an option for up to 18 additional units.

The company, in partnership with a global engineering firm, has developed a scrubber installation program whereby a significant amount of the required retrofit work will be carried out onboard the vessels while at sea and trading, thereby reducing off-hire time as compared with a typical shipyard installation. 

Related: 2020: Eagle Bulk Shipping to purchase additional 15 scrubbers

Photo credit: Eagle Bulk Shipping Inc.
Published: 23 January, 2019

 

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