Citi Has Sell on Eagle Bulk Shipping
Citi Investment Research is out with a research report on Eagle Bulk Shipping Inc. (NASDAQ: EGLE) and it has a Sell rating and a $1.50 price target on shares.
In a note to clients, Citi Investment Research writes, "Friday, Sept 30 , Eagle announced that it had secured a sixth amendment to its credit agreement, which provides some intermediate term relief on its covenants. While the immediately available information is limited, it appears that the amendment may not include a resolution to its collateral maintenance covenant dispute, which is the most immediately pressing issue between Eagle and its lenders. In addition, the provisions do not address our longer-term concern over the company's ability to amortize its $1.1 billion debt load, which accelerates to $54 million semi-annually beginning in 3Q12."
Shares of EGLE closed at $1.57 on Friday.
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