Scorpio Bulkers Cuts Loan Repayments, Delays Newbuilds

Monaco-based bulker owner Scorpio Bulkers has struck a deal in principle with its lenders to amend the minimum liquidity covenant and reduce future principal repayments under its credit facilities.

The reduction relates to all its loans greater of USD 50 million and USD 850,000 per vessel, to a new level of the greater of USD 25 million and USD 700,000 per vessel.

In exchange for making an advance principal repayment of approximately USD 41.2 million, the company has agreed to cut future principal repayments of USD 67.9 million in aggregate.

In addition, Scorpio also agreed with shipyards to delay the delivery of two Ultramax vessels and six Kamsarmax vessels under construction by around six months each. These vessels, previously expected to be delivered between March 2016 and September 2016 are now expected to be delivered between September 2016 and April 2017. Pursuant to these delays, USD 0.7 million that was previously expected to be paid to shipyards during 2016 is now pushed for 2017.

The company also struck a deal with a shipyard in China to reduce the price to be paid under the final installments of the construction contracts for two Ultramax bulk carriers to be delivered in Q2 2016 by approximately USD 0.9 million in aggregate.

Separately, Scorpio informed of a termination of time charter-in contracts, effective March 19, 2016, of four vessels (one Post-Panamax vessel, one Ultramax vessel, one Supramax vessel and one Handymax vessel) for a one-time payment of USD 10 million.

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