Eagle Bulk Shipping Inc. Announces the Pricing of USD 200 Million in Senior Bonds and the Arrangement of a USD 65 Million Cre...
November 16 2017 - 8:55AM
Eagle Bulk Shipping Inc. (NASDAQ:EGLE) (the “Company”)
announced today that one of its wholly-owned subsidiaries, Eagle
Bulk Shipco LLC, has priced (the “Offering”) USD 200 million in
senior secured bonds (the “Bonds”) which will carry a coupon of
8.25% and be due in November 2022.
In addition, a wholly-owned subsidiary of the Company, Eagle
Shipping LLC, has received a loan commitment from certain of its
existing lenders in the amount of USD 65 million for a senior
secured credit facility (the “Facility”) which will bear an
interest rate of LIBOR plus 3.50% and have a maturity date of
November 2022.
The net proceeds from the bond offering and loan will be used to
repay the outstanding amounts (at par) on both the existing first
and second lien facilities at Eagle Shipping LLC.
The Bonds, which are being placed in the Norwegian bond markets,
are being sold only to qualified institutional buyers in reliance
on an exemption from registration under the U.S. Securities Act of
1933, as amended (the “Securities Act”) and, outside the United
States, only to non-U.S. investors pursuant to Regulation S under
the Securities Act. The Offering is expected to close on or about
November 28, 2017, subject to customary closing
conditions.
The Bonds will not be registered under the Securities Act or the
securities laws of any other jurisdiction and may not be offered or
sold in the United States absent an effective registration
statement or an applicable exemption from registration requirements
or a transaction not subject to the registration requirements of
the Securities Act or any state securities laws. This press
release, which is being issued pursuant to and in accordance with
Rule 135c under the Securities Act, shall not constitute an offer
to sell or the solicitation of an offer to buy any security and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offering, solicitation or sale would be
unlawful.
The Facility is expected to close on or about December 7 2017,
subject to customary definitive documentation and closing
conditions.
Forward Looking Statements
Matters discussed in this press 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, including changes in the
Company’s financial resources and operational capabilities and as a
result of certain other factors listed from time to time in the
Company's filings with the U.S. Securities and Exchange Commission.
The Company disclaims any intent or obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
Company ContactFrank De CostanzoChief Financial OfficerEagle
Bulk Shipping, Inc.Tel. +1 203-276-8100Email:
investor@eagleships.com
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