3/30/2016 4:56:23 PMEagle Bulk Shipping, Inc. Announces Comprehensive Balance Sheet Recapitalization
Chief Executive Officer
"With the completion of this transaction, we are now well-positioned to re-focus on Eagle Bulk's development as a world-class commercial and technical Owner/Operator with the objective to deliver premium value and results around our assets. We are grateful to our investors and our lenders, as well as to our employees and business partners, for their confidence in Eagle Bulk's long-term potential."
Additional transaction highlights include the following:
- In addition to the
$60 millionof proceeds from the new second lien facility, Eagle Bulk will benefit from additional incremental liquidity through a $14 millionpermanent reduction in the Company's first lien minimum liquidity requirement, a deferral of more than $31 millionin amortization payments through 2018, and renewed, full access to the Company's $50 millionrevolver.
- Interest on the new second-lien debt is paid-in-kind and is payable in cash only upon loan maturity. In addition to receipt of this paid-in-kind interest, new second lien noteholders will be issued shares of common stock equivalent to 90% of the outstanding common stock of the Company after the issuance.
- The transaction also includes changes to Eagle Bulk's organizational structure that will allow the Company to opportunistically pursue growth opportunities in the dry bulk market.
Eagle Bulk intends to file its annual report on Form 10-K for the year ended
This press release does not constitute an offer to purchase any securities or a solicitation of an offer to sell any securities.
Eagle Bulk engaged
Matters discussed in this release may constitute forward-looking statements. Forward- looking statements reflect management's current expectations and observations with respect to future events and financial performance. Where the Company expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, the Company's forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements.
The Company's actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors which could include the following: (i) changes in demand in the dry bulk market, including, without limitation, changes in production of, or demand for, commodities and bulk cargoes, generally or in particular regions; (ii) greater than anticipated levels of dry bulk vessel new building orders or lower than anticipated rates of dry bulk vessel scrapping; (iii) changes in rules and regulations applicable to the dry bulk industry, including, without limitation, legislation adopted by international bodies or organizations such as the
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Investor Relations: Adir Katzav, Chief Financial Officer, Eagle Bulk Shipping Inc., Tel. +1 212-785-2500; Media: Jonathan Morgan, Perry Street Communications, New York, firstname.lastname@example.org, Tel. +1 212-741-0014