Eagle Bulk Shipping Inc. (Nasdaq:EGLE) announced that one of its wholly-owned subsidiaries, Eagle Bulk Ultraco LLC (“Ultraco”), has closed a new Credit Agreement in the aggregate principal amount of up to $61.2 million.
The Facility, which may be increased up to $100 million in the aggregate under certain conditions, is secured by the nine recently-acquired vessels from Greenship Bulk Trust. As of July 5, 2017, Eagle Bulk has taken delivery of seven of the Greenship Bulk vessels.
Gary Vogel, Eagle Bulk’s CEO, commented, “We are pleased to have successfully closed on this new Facility, which provides our Company with increased financial flexibility and additional borrowing capacity at attractive terms. This transaction will further support our fleet growth and renewal program, which to-date includes the acquisition of 11 modern Ultramaxes.
“We are appreciative to our lenders for their support, which we believe highlights their confidence in Eagle and our continued development as a premier Owner/Operator.”
The Facility carries an interest rate of LIBOR plus 2.95% and has a final maturity date of October 31, 2022, or five years. There are no fixed repayments until December 2018.
Lenders in the transaction are ABN AMRO, Skandinaviska Enskilda Banken AB (publ), and DVB Bank SE.