Scorpio Bulkers Secures Loan to Finance Scrubbers

Monaco-based dry bulk shipping company Scorpio Bulkers has agreed with certain lenders to increase certain existing credit facilities by a total of USD 41 million.

Illustration. Image Courtesy: PxHere under CC0 Creative Commons license

The company reached the agreement in order to finance the installation of exhaust gas cleaning systems (scrubbers) on certain of its vessels.

Scorpio Bulkers said that the additional amounts will be drawn upon the installation of the scrubbers on the respective vessels.

These are structured as upsizings of existing credit facilities and have loan margins matching the loan margins on the respective existing credit facilities, the company added.

The financing arrangements will be subject to conditions precedent and the execution of definitive documentation.

In December 2018, Scorpio Bulkers signed a deal to purchase hybrid-ready scrubbers for a total of 28 of its vessels. Under the deal, the company would equip 18 vessels with scrubbers in 2019 and another 10 in 2020.

The total value of these contracts was estimated to be around USD 42.4 million.

Scorpio Bulkers also has an option to purchase the equipment for a further 18 vessels in 2020.