The facility will be used to finance up to 60% of the fair market value of two Ultramax dry bulk vessels (SBI Perseus and SBI Phoebe) and two Kamsarmax dry bulk vessels (SBI Electra and SBI Flamenco).
The facility has a final maturity date of five years from drawdown date and bears interest at LIBOR plus a margin of 2.25% per annum. It would increase the company’s liquidity by approximately $21 million after repayment of the vessels’ existing debt.
Terms and conditions on the facility are similar to those set forth in Scorpio’s existing credit facilities, and the facility is subject to customary conditions precedent and the execution of definitive documentation.
Scorpio Bulkers provides marine transportation of dry bulk commodities and has an operating fleet of 57 vessels, including 56 wholly-owned or finance leased drybulk vessels and one time-chartered-in Ultramax vessel.