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>

<< Apr 2017 >>
MTWTFSS
27 28 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

THE 30TH WORLD PORTS CONFERENCE Enabling Trade Energizing The World

This event is expected to have more than 500 attendees from the field of port, logistics, shipping and maritime industry…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Smart Operations

Smart Operations events, from Fathom Maritime Intelligence, examines how to use intelligent shared integration, and connected operations…

read more >