Holders of Eagle Bulk’s 8.25% senior secured $200m bonds have voted overwhelmingly to approve amendments to the bond to help fund scrubber installations.
The company had been seeking the approval to put proceeds from the sale of ‘security vessels’ toward the cost of four scrubbers.
“Of the bondholders represented at the meeting, at which a quorum was present, 85.36% voted in favor of the amendments, which was a qualified majority,” the shipowner said in a statement.
The approvals mean Eagle Bulk will be allowed to use up to $25m from the sale of an undisclosed number of "security vessels" for putting scrubbers on four such ships.
The shipowner plans to install the four scrubbers as part of a 19-scrubber order announced in early September that includes options to buy 18 more of the devices. The cost, including installation, is expected to be about $2m per scrubber.
Prior to the amendments, proceeds from sale of a security vessel could only have been used towards vessel acquisitions or tendering for outstanding bonds.
The 8.25% senior secured bonds due in November 2022 were issued by subsidiary Eagle Bulk Shipco and are governed by Nordic Trustee.
ShipCo plans to pay for the installations through other funds as well, including available cash and cash flow from operations.
News of the bondholders decision came as Eagle Bulk reported a second quarter net profit of $2.6m versus a loss of $10.3m reported 12 months ago.
Net revenues for the quarter were $69.1m, representing an increase of $6.4m, or 10%, compared to the same period in 2017.
Looking ahead into the fourth quarter of 2018, Eagle Bulk said it had attained a time charter equivalent (TCE) of $12,407 with about 70% of the days fixed for the period thus far.
“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,” said chief executive Gary Vogel.
“I believe this consistency is attributable to both our active management methodology and the quality of our global commercial team.”
