Scorpio Bulkers Inc. Announces Closing of Previously Announced Credit Facilities and Newbuilding Vessel Deliveries

Scorpio Bulkers Inc. announced that it has closed two previously announced credit facilities, taken delivery of three newbuilding vessels, and agreed to time charter-out a Capesize newbuilding that is currently under construction in China.

$411.3 Million Loan Facility

On January 15, 2015, the Company closed a previously announced $411,264,000 senior secured credit facility with a group of financial institutions to finance a portion of the purchase price of 12 Capesize vessels (of which the Company has agreed to convert two Capesize vessels into the two LR2 product tankers that are held for sale) under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd. The facility matures six years, and in certain circumstances up to 12 years, from the delivery of the final vessel securing the facility.

$409.0 Million Loan Facility

On December 30, 2014, the Company closed a $408,976,447 senior secured credit facility arranged by two leading European financial institutions to finance a portion of the purchase price of 20 vessels (six Ultramax, nine Kamsarmax, and five Capesize vessels) with expected deliveries in 2015 and 2016. The facility was previously announced as a $540,000,000 loan, which has now been reduced to a size of $408,976,447 due to the removal of the financing on the four Capesize vessels that the Company has agreed to convert into four LR2 product tankers and sell to Scorpio Tankers Inc., a related party. The facility has a final maturity of six years from the date of signing.

Newbuilding Vessel Deliveries

The Company recently took delivery of the following vessels:

• SBI Bravo, an Ultramax vessel, was delivered from Nantong COSCO KHI Ship Engineering Co., Ltd. The vessel has been fixed for a time charter trip of about 45 days at a rate of $9,750 per day plus a lump sum of $300,000.
• SBI Athena, an Ultramax vessel, was delivered from Chengxi Shipyard Co., Ltd. The vessel has been fixed for a time charter trip of about 72 days at a rate of $7,500 per day for the first 65 days and $10,000 per day for the balance.
• SBI Samba, a Kamsarmax vessel, was delivered from Imabari Shipbuilding Co. Ltd. The vessel has been fixed for a time charter trip of about 60 days at a rate of $7,400 per day plus a lump sum of $200,000.

Time Charter Employment

The Company has agreed to time charter-out the SBI Puro, a Capesize vessel that is currently under construction in China with delivery expected in early February, 2015. Upon delivery from the shipyard, the vessel will be chartered-out to a major European charterer for 10-13 months at $13,800 per day.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently owns five dry bulk vessels (two Ultramax and three Kamsarmax vessels), time charters-in 17 dry bulk vessels (one Handymax, one Ultramax, three Supramax, three Panamax, six Kamsarmax and three Post-Panamax vessels) and has contracted for 68 dry bulk vessels consisting of 27 Ultramax, 19 Kamsarmax and 22 Capesize vessels from shipyards in Japan, South Korea, China and Romania. The Company also has six LR2 tankers under construction from shipyards in South Korea and Romania, four of which the company has agreed to sell and two of which are held for sale. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 7.5 million deadweight tonnes.
Source: Scorpio Bulkers Inc.