Scorpio Bulkers announced that it has agreed to sell and leaseback two Ultramax vessels (SBI Cronos and SBI Achilles) and one Kamsarmax vessel (SBI Lynx) to Ocean Yield ASA for a total financing consideration of $62.8 million.
Upon completion, which is estimated to take place in the first quarter of 2020, the Company’s liquidity is expected to increase by up to $33.6 million after the repayment of outstanding debt. The Company will also be able to drawdown on an additional tranche of up to $4.5 million in aggregate for installation of exhaust gas cleaning systems (“scrubbers”) on the three vessels.
As part of the agreements, the Company will bareboat charter-in the SBI Cronos for a period of nine years, the SBI Achilles for a period of ten years and the SBI Lynx for a period of twelve years. In addition, the Company has several purchase options during the charter period of each agreement. There is also a purchase option for each vessel upon the expiration of each agreement.
These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation.