Scorpio Bulkers Secures Five Charter-In Agreements

Scorpio Bulkers Inc. has received a commitment for a $67.5 million Loan Facility and agreed to time charter-in five dry bulk vessels.

$67.5 million Loan Facility

On February 25, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility of up to $67.5 million. The Facility will be used to finance up to 60% of the purchase price upon delivery of two Ultramax and two Kamsarmax vessels currently under construction. The Loan Facility has a final maturity of seven years from the date of delivery of each vessel. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Loan Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.

Time charter-in agreements

The terms of the five time charter-in contracts are summarized as follows:

A 2010 built Ultramax for three years at $14,250 per day. We have options to extend the charter for up to three consecutive one year periods at $15,250 per day, $16,250 per day and $17,250 per day, respectively. The vessel is expected to be delivered during April 2014.
A 2010 built Supramax for 20 to 24 months at Company’s option at $14,250 per day. We have an option to extend the charter for an additional 10 to 12 months at $14,850 per day. The vessel is expected to be delivered during the second quarter of 2014.
A 2011 built Kamsarmax for 23 to 28 months at Company’s option at $15,000 per day. We have an option to extend the charter for an additional 11 to 13 months at $16,000 per day. The vessel was delivered on February 15, 2014.
A 2012 built Kamsarmax for 11 to 14 months at the Company’s option at $14,000 per day. We have an option to extend the charter for an additional 11 to 14 month period at $14,750 per day. The vessel was delivered on February 23, 2014.
A 2015 built Supramax for three years at $14,000 per day. We have options to extend the charter for up to two consecutive one year periods at $15,000 per day and $16,000 per day, respectively. The vessel is expected to be delivered during the first half of 2015.

Emanuele Lauro, Chairman and Chief Executive Officer, commented, “We continue to make significant progress in the execution of our business plan. First and foremost, we are pleased to have received a commitment for an additional credit facility, and we expect to announce additional financings over the next two quarters to continue towards our objective of fully financing our fleet within 2014. In addition, we are excited to announce additional charter-in agreements, reflecting our continued belief in attractive fundamentals in the dry bulk market.”