Ultramax Loan Sees Scorpio’s Fleet Fully Financed

  • Business & Finance

New York-listed dry bulk specialist Scorpio Bulkers Inc has received a commitment from an unnamed European financial institution for a loan facility of up to USD 12.5 million for its final unfinanced vessel.

With this move, the company has now either signed credit facility agreements or received commitments for all 60 vessels in its fleet.

Scorpio Bulkers said that the proceeds of the facility will finance a portion of the purchase price of the Ultramax vessel that was delivered to the company in the fourth quarter of 2015 from Imabari Shipbuilding Co. Ltd.

The facility has a final maturity of five years from the date of signing.

The terms and conditions of the facility for the 60th newbuild are consistent with Scorpio’s previous financing facilities and the final commitment is expected during the fourth quarter of 2015, the company said.

Scorpio has contracted for the construction of 60 dry bulk vessels, comprised of 28 Ultramax, 21 Kamsarmax and 11 Capesize newbuildings.

Of this total, through October 29, 2015, the company took delivery of five Capesize, nine Kamsarmax and 12 Ultramax vessels. The construction price for the remaining 34 dry bulk vessels is USD 1.163 billion, out of which USD 645.7 million remains unpaid.

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