Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Files An 8-K Other EventsItem 8.01.Other Events.
On November 16, 2017, Eagle Bulk Shipping Inc. (the “Company”) announced that Eagle Bulk Shipco LLC, a wholly-owned subsidiary of the Company, has priced USD 200 million in aggregate principal amount of senior secured bonds (the “Bonds”) which will carry a coupon of 8.25% and be due in November 2022.
In addition, the Company announced that Eagle Shipping LLC, the Company’s wholly-owned subsidiary, has received a loan commitment from certain of its existing lenders in the amount of USD 65 million for a senior secured credit facility (the “Facility”) which will bear an interest rate of LIBOR plus 3.50% and have a maturity date of November 2022.
The net proceeds from the bond offering and loan will be used to repay the outstanding amounts (at par) on both the existing first and second lien facilities at Eagle Shipping LLC.
The Bonds, which are being placed in the Norwegian bond markets, are being sold only to qualified institutional buyers in reliance on an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and, outside the United States, only to non-U.S. investors to Regulation S under the Securities Act. The bond offering is expected to close on or about November 28, 2017, subject to customary closing conditions.
The Bonds will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.
The Facility is expected to close on or about December 7 2017, subject to customary definitive documentation and closing conditions.
This Current Report on Form 8-K and Exhibit 99.1 hereto contain forward-looking statements within the meaning of the federal securities laws. These forward looking statements are based on current expectations and are not guarantees of future performance. Further, the forward-looking statements are subject to the limitations listed in Exhibit 99.1 and in the other reports of the Company filed with the Securities and Exchange Commission, including that actual events or results may differ materially from those in the forward-looking statements.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
Eagle Bulk Shipping Inc. ExhibitEX-99.1 2 pressreleaseexhibit9911115.htm EXHIBIT 99.1 Exhibit Eagle Bulk Shipping Inc. Subsidiary Prices USD 200 Million Offering of Senior Secured Bonds STAMFORD,…To view the full exhibit click here
