Eagle Bulk Raising Money for New Charters

Marshall Islands-registered shipping company Eagle Bulk Shipping has entered into an agreement with its investors to issue a private placement of shares targeting approximately USD 6.3 million.

Under the terms of the preferred stock purchase agreement, the company plans to issue 15% cumulative nonparticipating redeemable series A preferred stock, par value USD 0.01 per share at a purchase price of USD 1,000 per share, with a 1.0% original issue discount.

Eagle Bulk said that the proceeds are expected to contribute to the company’s financial capacity and flexibility and to be used for general corporate purposes and business initiatives, including the procurement of chartered tonnage to supplement the owned fleet.

The closing of the transaction and the issuance of the shares is subject to customary closing conditions and the approval by the company’s shareholders.

During the first quarter of 2016, the financially-troubled owner and operator of Supramax dry bulk vessels has sold the vessel Peregrine and entered into an agreement to sell two additional vessels, MV Harrier and MV Falcon.

The sale of the three vessels will bring in a total of USD 9.2 million after brokerage commissions, the company said.

The announcement was made as Eagle Bulk reported a net loss of USD 39.3 million for the first quarter of 2016, compared to a net loss of USD 20.7 million for the comparable quarter in 2015.