US-based Eagle Bulk Shipping has bolstered its borrowing capacity by adding $175m to its existing credit facility with a reduction in margin and an extension in maturity by two years.
The ammended deal totals $485m, comprised of a $300m term loan and a $185m revolving credit facility, and bears an interest rate of adjusted term SOFR plus a margin of between 2.05% and 2.75%, depending on leverage and the company meeting certain sustainability-linked criteria.
Eagle Bulk has a fully modern fleet of 52, predominately scrubber-fitted bulkers with an average age of under 10 years. The New York-listed firm has $260m remaining available under the facility which will now mature on September 28, 2028.
The company’s chief executive Gary Vogel said that after the recent addition of four ultramaxes the financing has “significantly increased” Eagle Bulk’s liquidity position, with cash and available borrowings now totaling over $400m.
“Our enhanced liquidity profile positions us well to continue to take advantage of opportunities and create value for our stakeholders, including the potential retirement of our convertible bond which matures in 2024,” he added.
Credit Agricole, Danish Ship Finance, DNB Markets, Nordea Bank, Filial I Norge, and Skandinaviska Enskilda Banken acted as lenders, lead arrangers, and bookrunners with Deutsche Bank, ING Bank and London Branch joining as lenders. Credit Agricole also acted as structurer, sustainability coordinator and facility agent.
