Eagle Bulk Shipping, an owner-operator within the midsize drybulk vessel segment, entered into an amended and restated credit agreement that provides for an increased borrowing capacity of $175 million, a reduction in margin and an extension in maturity by two years of the company’s senior secured credit facility.
The facility now totals $485 million and is comprised of a $300 million term loan and a $185 million revolving credit facility. The facility bears an interest rate of adjusted term SOFR plus a margin of between 2.05% and 2.75%, depending on leverage and the company’s ability to meet certain sustainability-linked criteria. The term loan will continue to amortize at a rate of $12.5 million per quarter, while starting in September, the availability under the revolving credit facility will reduce at a rate of $5.5 million per quarter. The facility will mature on Sept. 28, 2028.
Crédit Agricole Corporate & Investment Bank, Danish Ship Finance, DNB Markets, Nordea Bank, Filial I Norge and Skandinaviska Enskilda Banken acted as lenders, mandated lead arrangers, and bookrunners for the amended facility. Deutsche Bank and the London branch of ING Bank also acted as lenders. Crédit Agricole also acted as structurer and sustainability coordinator and is the facility agent for the loan.
As of today, $260 million remains available under the facility, including $75 million under the term loan and $185 million under the revolving credit facility.
“Following the recent acquisition of four modern Ultramax vessels, this financing has significantly increased our liquidity position, with cash and available borrowings now totaling over $400 million,” Gary Vogel, CEO of Eagle Bulk Shipping, said. “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.”