Scorpio Bulkers Inks Sale, Leaseback for Ultramax Bulker

MoneyIllustration. Image Courtesy: Pexels under CC0 Creative Commons license

Monaco-based Scorpio Bulkers has entered into a financing transaction related to one of its Ultramax vessels with an unaffiliated third party.

As part of the transaction, the company will sell a 2015-built Ultramax dry bulk vessel, SBI Echo, for a consideration of USD 19 million and then lease it back from the buyer through a five-year bareboat charter agreement at a rate of USD 5,400 per day.

If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at current swap rates would be LIBOR + 1.97% per annum.

The transaction also provides the company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement.

This transaction, which shall be treated as a financial lease for accounting purposes, increases Scorpio Bulkers’ liquidity by USD 7.9 million after repayment of the vessel’s existing loan.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2019 >>
MTWTFSS
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 1 2 3

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

2nd CWC Japan LNG & Gas Summit

The highly successful CWC Japan LNG & Gas Summit returns for a second year…

read more >

GREENTECH IN SHIPPING GLOBAL FORUM

The mindset of sustainability and efficiency is the key to unlocking successful business…

read more >

LNG2019

LNG2019 features the largest number and highest level of LNG industry leaders.

read more >