Scorpio Bulkers Inc. Announces the Financing of a Kamsarmax Vessel in Japan
October 20 2017 - 7:58AM
Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the
“Company”) announced today that it has entered into a financing
transaction in respect of one of the Company’s Kamsarmax vessels
with unaffiliated third parties in Japan. The cost of the
financing is equivalent to an expected fixed interest rate of 4.24%
for 10 years. If converted to floating interest rates, based
on the expected weighted average life of the transaction, the
equivalent margin at current swap rates would be LIBOR + 2.07%.
As part of the transaction, the Company will
sell a 2015 Japanese built Kamsarmax dry bulk vessel, SBI Rumba,
for a consideration of approximately $19.6 million and then lease
it back from the buyers through a 9.5 year bareboat charter
agreement, with the Company’s option to extend for a further six
months. The agreement also provides the Company with options
to repurchase the vessel beginning on the fifth anniversary of the
sale and until the end of the bareboat charter agreement.
This transaction, which shall be treated as a financial lease for
accounting purposes, increases the Company’s liquidity by
approximately $6.0 million, net of commissions and after repayment
of the vessel’s existing loan.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine
transportation of dry bulk commodities. Scorpio Bulkers Inc.,
after the completion of the recent acquisition of six Ultramax
vessels, will own 52 vessels, consisting of 18 Kamsarmax vessels
and 34 Ultramax vessels. The Company also time charters-in one
Ultramax vessel. The owned fleet will have a total carrying
capacity of approximately 3.6 million deadweight tonnes upon the
completion of the acquisition of the six Ultramax vessels.
Additional information about the Company is available on the
Company’s website www.scorpiobulkers.com, which is not a part of
this press release.
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words “believe,” “anticipate,” “intend,” “estimate,” “forecast,”
“project,” “plan,” “potential,” “may,” “should,” “expect,”
“pending” and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management’s examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the failure of counterparties to fully perform
their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for dry bulk
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, changes in
governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
Contact:
Scorpio Bulkers Inc.+377-9798-5715
(Monaco)+1-646-432-1675 (New York)
Scorpio Bulkers (NYSE:SALT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Scorpio Bulkers (NYSE:SALT)
Historical Stock Chart
From Sep 2023 to Sep 2024