Nasdaq-listed Eagle Bulk Shipping saw a majority of investors vote to approve amendments to the Eagle Bulk ShipCo bond terms to finance more scrubber retrofits.
Namely, the company informed that the holders of the USD 200 million in aggregate principal amount of 8.250% Senior Secured Bonds, due in November 2022, approved amendments to the bond terms at a meeting on November 6.
Of the bondholders represented at the meeting, at which a quorum was present, 85.36 per cent voted in favor of the amendments, which was a qualified majority, Eagle Bulk Shipping informed.
The amendment to the bond terms would allow for the use of proceeds from the sale of security vessels, up to a proposed USD 25 million for the partial financing of scrubbers. This would finance four exhaust gas cleaning systems to be retrofitted to the company’s fleet of vessels and options to purchase 18 additional scrubbers, the company earlier said.
In early September 2018, Eagle Bulk signed a series of agreements to purchase of up to 37 scrubbers. The contracts include firm orders for 19 scrubbers and up to an additional 18 units. The projected cost, including installation, is approximately USD 2 million per scrubber system.
Eagle Bulk separately released its financial report for the three and nine months ended September 30, 2018, in which it cited a rise in net revenues and TCE revenue.
The company delivered net revenues of USD 69.1 million in the third quarter of the year, representing an increase of 10% compared to the same period in 2017, while TCE revenue for the quarter equated to USD 46.5 million, surging by 31% year-on-year.
Net income for the period stood at USD 2.6 million, compared to a net loss of USD 10.3 million for the comparable quarter in 2017.
“The third quarter marks the seventh consecutive quarter where we have outperformed the benchmark Baltic Supramax Index; a significant accomplishment in what has been a steadily rising market,” Gary Vogel, Eagle Bulk’s CEO, said.