Scorpio Bulkers announces sale and leaseback agreements for two dry bulk vessels

April 08 2019 Print This Article

Scorpio Bulkers Inc. announced that it has agreed to sell and leaseback two Ultramax vessels (SBI Libra and SBI Virgo) to an unaffiliated third party.  Upon completion, which is estimated to take place in the second quarter of 2019, the Company’s liquidity is expected to increase by up to $17.0 million in aggregate, comprising $14.0 million upon closing after the repayment of outstanding debt and an additional tranche of up to $3.0 million for installation of exhaust gas cleaning systems on both vessels.

As part of the agreements, the Company will bareboat charter-in the vessels for a period of eleven years and have purchase options beginning at the end of the fourth year of each agreement.

These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation.