Eagle Bulk Closes on New USD 208 Mn Loan

US-based owner and operator Eagle Bulk Shipping has, through its subsidiary Eagle Bulk Ultraco, closed on a new five-year senior secured facility.

The credit amounts to USD 208.4 million and has an interest rate of LIBOR plus 2.50%. Maturing in 2024, the facility is secured by 21 vessels, including the M/V Cape Town Eagle which was acquired earlier in January, and includes a term loan of USD 153.4 million and a revolving credit facility of USD 55 million.

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 funds available under the RCF, totaling USD 65 million, can be used for general corporate purposes, including capital expenditures relating to the installation of scrubbers.

Under certain conditions, the facility may be increased by up to USD 60 million to finance vessel acquisitions. The company secured the loan commitment on January 22.

Financing for the Facility has been provided by ABN AMRO, Credit Agricole Corporate and Investment Bank (Credit Agricole), Skandinaviska Enskilda Banken AB (SEB), DNB Bank ASA (DNB), Danish Ship Finance, and Nordea.