Scorpio Bulkers announced that the Company has received a commitment from a leading European financial institution for a loan facility of up to $34.0 million.
The loan facility will be used to finance up to 62.5% of the fair market value of two Kamsarmax bulk vessels (SBI Jive and SBI Swing). The loan facility, which is expected to close within the third quarter of 2018, will be comprised of a term loan up to $17.0 million and a revolver up to $17.0 million.
The loan facility has a final maturity date of seven years from signing date and bears interest at LIBOR plus a margin of 2.35% per annum. This loan facility is expected to increase the Company’s liquidity by approximately $10.0 million after repayment of the vessels’ existing debt. The terms and conditions are similar to those set forth in the Company’s existing credit facilities and the loan facility is subject to customary conditions precedent and the execution of definitive documentation.