Benzinga | Jun 2, 2021 08:11AM EDT

Eagle Bulk Shipping Reports Purchase Of 2 Modern Ultramax Bulkcarriers For $44M

Eagle Bulk Shipping Inc. (NASDAQ:EGLE) ("Eagle Bulk," "Eagle" or the "Company"), one of the world's largest owner-operators within the Supramax / Ultramax drybulk segment, today announced that it has purchased two high-specification 2015-built scrubber-fitted Ultramax bulkcarriers for total consideration of USD 44 million.



The vessels, which will be renamed the M/V Antwerp Eagle and M/V Valencia Eagle, are of the SDARI-64 design and were constructed at Jiangsu Hantong Ship Heavy Industry Co. The Company expects to take delivery of both ships during the third quarter of 2021.

These acquisitions will be funded with cash on hand, which includes equity issued under the Company's ATM program. During the month of May, Eagle issued 475,894 shares of common stock at an average price of USD 47.39, raising a total of USD 22.5 million in gross proceeds.

Gary Vogel, Eagle's CEO commented "Given recent market developments, and our positive view on supply-demand fundamentals and asset prices, we continue to seek accretive growth opportunities. In this regard, we are pleased to have been able to secure two modern scrubber-fitted Ultramaxes in conjunction with an equity raise under our ATM program."

Separately, the Company has reached an agreement to sell the M/V Tern (2003-built Supramax) for USD 9.7 million. The sale is expected to close in July, prior to the vessel's statutory drydock and requisite ballast water treatment system (BWTS) installation due date.

Following these transactions, Eagle's fleet will total 53 ships, with an average age of 8.7 years.

Over the past five years, the Company has executed on a comprehensive fleet renewal and growth initiative, acquiring 29 modern vessels and divesting 20 of its oldest and least efficient ships. These sale and purchase transactions have vastly improved Eagle's fleet makeup; allowing us to maintain a low average age, increase cargo capacity per vessel, and reduce emissions on a per deadweight ton basis.