The US-based ship owner and operator Eagle Bulk Shipping revealed plans to offer USD 100 million aggregate principal amount of Convertible Senior Notes due 2024 in a private placement.
As explained, the company intends to use the net proceeds from the offering to fund a portion of the total price of up to six high-specification Ultramax vessels that would be added to Eagle Bulk’s fleet.
Eagle Bulk said that closing of the vessel acquisition is subject to customary conditions.
What is more, the net proceeds would be used for general corporate purposes, including working capital.
The notes will be offered to “qualified institutional buyers” and to “non-U.S. persons in offshore transactions outside of the United States.”
Specifically, the notes will be general, unsecured senior obligations of the company, pay interest semi-annually in arrears on February 1 and August 1 of each year — beginning on February 1, 2020–, and may be converted, in whole or in part, at the holder’s option, into cash, shares of Eagle Bulk’s common stock or a combination of cash and shares of its common stock, at the company’s election.