Eagle pays US$1 bn for newbuilding fleet
US-based bulker owner Eagle Bulk Shipping is buying 26 supramax newbuildings, with deliveries between 2008 and 2012 from the holding company of Greek-based Anemi Maritime Services for about US$1.1bn.
Eagle says that 21 of the 26 vessels are secured by long-term charters up to 2018 with average charter duration in excess of 10 years from today. The minimum contracted revenue on the chartered vessels is put at about US$bn and the company says uncapped profit sharing on 17 of the chartered vessels may further enhance revenue potential.
The acquisition will more than double Eagle's fleet from 23 to 49 vessels, expand tonnage by 124%, and reduce the average age of the fleet to 2 years. Upon completion of this acquisition, the Eagle fleet will consist of 46 supramax and 3 handymax vessels. The company also notes: “The acquisition will also increase the number of sister ships to 41, further enhancing efficiency and economies of scale.”
Eagle chairman and CEO Sophocles Zoullas said, "This accretive transaction leverages management's strong industry relationships and reaffirms our commitment to the supramax asset class, which we believe is highly versatile and optimally aligned with global trade demands. With a total fleet size of 49 vessels after this transaction, Eagle Bulk will be strongly positioned to generate healthy and sustainable cash flows for shareholders over the long term. Contracted revenues of approximately $1.2 billion from the fleet charters provide us with confidence that we will be able to pay down debt, sustain a quarterly dividend of $0.50 per share over the long term, and execute our growth strategy to increase our returns over time."
He continued, "Furthermore, we believe that the proposed 10-year, $1.6 billion revolving line of credit led by our lender, Royal Bank of Scotland plc, affirms our fundamental financial strength while providing us with the flexibility to pursue additional growth."
Eagle says that 21 of the 26 vessels are secured by long-term charters up to 2018 with average charter duration in excess of 10 years from today. The minimum contracted revenue on the chartered vessels is put at about US$bn and the company says uncapped profit sharing on 17 of the chartered vessels may further enhance revenue potential.
The acquisition will more than double Eagle's fleet from 23 to 49 vessels, expand tonnage by 124%, and reduce the average age of the fleet to 2 years. Upon completion of this acquisition, the Eagle fleet will consist of 46 supramax and 3 handymax vessels. The company also notes: “The acquisition will also increase the number of sister ships to 41, further enhancing efficiency and economies of scale.”
Eagle chairman and CEO Sophocles Zoullas said, "This accretive transaction leverages management's strong industry relationships and reaffirms our commitment to the supramax asset class, which we believe is highly versatile and optimally aligned with global trade demands. With a total fleet size of 49 vessels after this transaction, Eagle Bulk will be strongly positioned to generate healthy and sustainable cash flows for shareholders over the long term. Contracted revenues of approximately $1.2 billion from the fleet charters provide us with confidence that we will be able to pay down debt, sustain a quarterly dividend of $0.50 per share over the long term, and execute our growth strategy to increase our returns over time."
He continued, "Furthermore, we believe that the proposed 10-year, $1.6 billion revolving line of credit led by our lender, Royal Bank of Scotland plc, affirms our fundamental financial strength while providing us with the flexibility to pursue additional growth."