Eagle Bulk Shipping Inc (NASDAQ:EGLE) declared that an agreement had been finalized with the stakeholders and lenders for recapitalization of the balance sheet of the company for 75% of outstanding equity. The exchange will help Eagle Bulk acquire and incremental liquidity of $105 million, which incorporates another second lien office that contains new capital of $60 from capital suppliers and existing shareholders.
Gary Vogel, chief executive officer of the company said that they were satisfied to have achieved this far reaching deal that fortifies Eagle Bulk’s capital structure. The mix of extra liquidity and the upgraded budgetary adaptability will enhance the capacity to drive forward through the present business sector, and another corporate structure will empower the company to seek after business sector opportunities. It is another establishment for long haul, maintainable achievement sponsored by solid backing from our moneylenders and shareholders, he said.
Transaction Details
With the consummation of this exchange, the company was in a position to re-concentrate on Eagle Bulk’s improvement as a world-class business and specialized Owner/Operator with the target to convey premium esteem and results.
Notwithstanding the proceeds of $60 million from the new second lien office, Eagle Bulk will profit by extra incremental liquidity through a $14 million changeless decrease in the Company’s first lien least liquidity necessity. This will be a deferral of more than $31 million in amortization installments through 2018.
The second-lien obligation interest would be paid-in-kind or real money just upon advance development. Notwithstanding receipt of this interest, the second lien noteholders of the company will be issued shares of regular stock comparable to 90% of the extraordinary normal supply of the Company after the issuance.
Benefits of Agreement
The exchange likewise incorporates changes to Eagle Bulk’s hierarchical structure that will permit the Company to entrepreneurially seek after development opportunities in the dry mass business sector.
The Company is a worldwide proprietor of Supramax dry mass vessels that range basically in size from 50,000 to 60,000 deadweight tons and transport an expansive scope of major and minor mass cargoes that comprise mineral, coal, petcoke, grain, fertilizer, concrete, steel and others along delivery routes globally.
