Scorpio Bulkers Inc. Announces a Commitment for a New Loan Facility and the Agreement to Modify a Contract to Acquire a Singl...
04 December 2017 - 10:30PM
Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the
“Company”) announced today that the Company has received a
commitment from a leading European financial institution for a loan
facility of up to $38.7 million. The loan facility will be used to
finance up to 60% of the market value of the three Ultramax dry
bulk vessels the Company has recently agreed to acquire. The loan
facility will have a final maturity of five years from the signing
date and bears interest at LIBOR plus a margin of 2.85% per annum.
The terms and conditions will be similar to those set forth in the
Company's existing credit facilities. The loan facility is subject
to customary conditions precedent and the execution of definitive
documentation.
Scorpio Bulkers also announced today that the
Company has agreed to modify a previously announced contract with
an unaffiliated third party to acquire a 2015 Chinese built
Ultramax dry bulk vessel. The Company will now include in the total
consideration 910,802 common shares of the Company.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine
transportation of dry bulk commodities. Scorpio Bulkers Inc., after
the completion of its recent acquisitions of nine Ultramax vessels,
will own or finance lease 55 vessels, consisting of 18 Kamsarmax
vessels and 37 Ultramax vessels. The Company also time charters-in
one Ultramax vessel and one dry bulk Kamsarmax vessel is expected
to be delivered to the Company in the second quarter of 2018 from a
shipyard in China. Upon final delivery of all the vessels the
owned fleet is expected to have a total carrying capacity of
approximately 3.9 million deadweight tonnes. 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)
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