Scorpio Bulkers, Lenders Modify Loan Terms

Image Courtesy: Scorpio

NYSE-listed dry bulk owner and operator Scorpio Bulkers, Inc. has struck a deal in principle with its lenders to change the interest coverage ratio covenant and reduce the value-to-loan ratio covenant under the company’s loans.

Under the terms of the agreements, the company’s interest coverage ratio would not be applicable for certain loans until the first quarter of 2018, at which point the ratio will be 1.00 to 1.00 and will be calculated on a year-to-date basis for the first and second quarter of 2018. Thereafter, the interest coverage ratio will revert to its original covenant level of 2.50 to 1.00.

The deals also state that Scorpio Bulkers’ value-to-loan ratio covenant would be reduced to 140% for all facilities, with an exception of the company’s USD 67.5 million loan, where the covenant level would be reduced to 115%.

Furthermore, the company agreed with its lenders to prepay approximately USD 14.5 million in aggregate of principal installments on outstanding borrowings, of which USD 12.1 million is to be applied against principal installments falling due between the second quarter of 2016 and the third quarter of 2018.

Scorpio Bulkers also added that it has agreed with all of its lenders to amend definitions within its leverage ratio and consolidated net worth covenants to exclude certain non-operating items.

During the first quarter of the year the company canceled a shipbuilding contract for a Kamsarmax bulk carrier that was expected to be delivered in April 2016, resulting in a loss of approximately USD 11.6 million.

Scorpio Bulkers also delayed the deliveries of two Ultramax vessels and six Kamsarmax vessels under construction by approximately six months each.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

Indonesia Marine & Offshore Expo (IMOX) 2017

Indonesia Marine & Offshore Expo (IMOX) 2017, Batamis an international maritime and offshore industrial event that brings an international…

read more >

CWC World LNG & Gas Series: Americas Summit

Now in its 15th year, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG event in the Americas region.

Bringing together the key players in the LNG & gas value chain in both the Americas region and globally, this is the perfect place to make new contacts, do deals and get essential updates on the market.

This year we return to Houston, TX once again on 20-23 June 2017 – the heart of the energy industry, making it easier than ever to access they key players in your business.

More info

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >