Eagle Bulk closes on $22.6 million term loan facility increase

By Sarah Lizee

Olympia, Wash., June 15 – Eagle Bulk Shipping Inc. subsidiary Eagle Bulk Ultraco LLC amended its credit agreement on June 9 with ABN Amro Capital USA LLC as facility agent, increasing the term facility commitments by $22.6 million, according to an 8-K filing with the Securities and Exchange Commission.

Pricing is Libor plus 250 basis points.

Net loan proceeds will be used for general corporate purposes.

The incremental amount of the facility is secured by two Ultramaxes already owned by the company, the M/V Hong Kong Eagle and the M/V Santos Eagle.

Under the third amendment, the company drew down $22.6 million. As of June 9, the total debt outstanding under the credit agreement, excluding the amounts outstanding under the revolver, is $182.1 million.

Eagle Bulk Ultraco must repay the aggregate principal amount of the second incremental borrowings in 15 consecutive quarterly principal repayment installments of an amount equal to $512,500 beginning on July 27, and occurring every 90 days onwards and a final balloon payment in an amount equal to the aggregate principal amount of the second incremental borrowings on Jan. 25, 2024, the maturity date of the credit agreement.

In connection with the third amendment, a fee of $400,000 was paid to the lenders.

ABN Amro, Credit Agricole CIB, Skandinaviska Enskilda Banken AB, DNB Bank ASA and Danish Ship Finance are mandated lead arrangers, with ABN Amro as arranger and bookrunner.

Based in New York, Eagle Bulk owns dry bulk vessels and transports bulk cargoes.

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