Proposed Amendment to Eagle Bulk Bond Terms to Facilitate Financing of Scrubbers

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Eagle Bulk announced that it has mandated DNB Markets, Fearnley Securities and SEB to arrange a series of meetings commencing on October 5, 2018 with existing holders of the USD 200 million in aggregate principal amount of 8.250% Senior Secured Bonds due in November 2022 (OSLO BØRS: EBS01 (Bonds)) (the “Bonds”) issued by the Company’s wholly owned subsidiary Eagle Bulk Shipco LLC (“ShipCo”).

The meetings are for the purpose of seeking approval from holders of the Bonds for an amendment (the “Proposed Amendment”) to the bond terms, dated November 22, 2017 (the “Bond Terms”), by and between Shipco, as issuer, and Nordic Trustee AS, which govern the Bonds, to allow for the use of proceeds from the sale of certain vessels that secure the Bonds (the “Security Vessels”) owned by Shipco for financing of four exhaust gas cleaning systems (“Scrubbers”) to be retrofitted to its fleet of vessels and options to purchase 18 additional Scrubbers.

Reference is made to the Company’s previous announcement on September 4, 2018 where the Company indicated that it has entered into a series of agreements (the “Agreements”) for the order of the 19 Scrubbers. The Company intends to complete the installation of Scrubbers on the 19 vessels prior to January 1, 2020, which is the implementation date of the sulphur emission cap regulation set forth by the International Maritime Organisation.

As part of the Agreements, Shipco intends to install Scrubbers on four of the Security Vessels. In addition to these installations, Scrubbers may be installed on up to an additional 18 of the Security Vessels under the options agreements. The cost, including installation, is expected to be approximately USD 2 million per Scrubber.

ShipCo seeks to finance the installation of the Scrubbers through sources of funds which may include available cash, cash flow from operations and proceeds from the sale of Security Vessels.

According to the Bond Terms, proceeds from sale of a Security Vessel can only be used towards either vessel acquisitions and/or tendering for outstanding Bonds. As described above, the Proposed Amendment is intended to allow for the use of proceeds from the sale of Security Vessels, up to a proposed USD 25 million for the partial financing of the Scrubbers.

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