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>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 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 31 1 2 3 4 5

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >