Eagle Bulk Bondholders Approve Scrubber Amendments

Vogel-Eagle-Bulk

Eagle Bulk saw a majority of investors vote to approve amendments to the Eagle Bulk ShipCo bond terms to finance more scrubber retrofits.

Namely, the company informed that the holders of the USD 200 million in aggregate principal amount of 8.250% Senior Secured Bonds, due in November 2022, approved amendments to the bond terms at a meeting on November 6.

Of the bondholders represented at the meeting, at which a quorum was present, 85.36 per cent voted in favor of the amendments, which was a qualified majority, Eagle Bulk Shipping informed.

The amendment to the bond terms would allow for the use of proceeds from the sale of security vessels, up to a proposed USD 25 million for the partial financing of scrubbers. This would finance four exhaust gas cleaning systems to be retrofitted to the company’s fleet of vessels and options to purchase 18 additional scrubbers, the company earlier said.

In early September 2018, Eagle Bulk signed a series of agreements to purchase of up to 37 scrubbers. The contracts include firm orders for 19 scrubbers and up to an additional 18 units. The projected cost, including installation, is approximately USD 2 million per scrubber system.

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